Hello, i think i have same problem. I got my zte blade (branded as uk orange san francisco) yesterday. The problem seems to me very strange so i will write all details to avoid missing anything important.
Firmware version: 2.1-update1
Baseband version: P729BB01
Kernel version: 2.6.29 zte-kernel@Zdroid-SMT
Build number: OUK_P729BV1.0.0B10
After receiving phone I played with stock firmware for quite a while, then i unlocked the phone, and decided to upgrade android. Method with installing ClockWorkMod from computer didn't work for me (phone didn't react to holding volume up while pressing power) so i installed UniversalAndroot-1.6.2-beta5.apk (md5sum e37d6c0b28c0a94e7b0a94702d5b18da) and RecoveryManager_v0.34b.apk (md5sum 5ad261036fb7d91713be4b2ea3bac453). Using thees programs i installed recovery-clockwork-126.96.36.199-blade.img (md5sum 4b949d51c54501e1a3dd0a4c6095766e). After booting to recovery i first of all made backup and copied it to computer. Then i partitioned 2GB memory card from phone (512 ext + 0 swap) but after mounting Windows 7 didn't see fat partition, but only 1.86GB unformatted drive. So while card was still in phone i formatted it to fat and copied to memory card file JOHN77_V5.zip (md5sum 4a3e736932330b2be1a38937413d1695). I did all wipes and installation according to instruction, and when it finished phone booted into new android and everything worked. I played with new firmware, installed some apps and then i have decided that i need more space and i need to get ext partition working on memory card. I booted into recovery, partitioned memory card with same 512 ext partition and after turning off phone i put memory card into linux computer. All partitions were visible so i copied JOHN77_V5.zip to fat partition again and after putting memory card back i installed it again (compare to previous time i might have used more wipe options). But after restarting touchscreen didn't work anymore. I saw message about touching android, all buttons were working but i couldn't do anything because touchscreen didn't work. I thought this had something to do with memory card partitioning because it was the only thing i have changed. I tried many different combinations with/without memory card and wiping but nothing worked. As a last resort i tried installing CyanogenMod 7 nightly build with same effect: everything worked but not touchscreen. At this point i was sure that my touchscreen is dead so i was going to return phone and restored backup with orange firmware which i did in the very beginning. Surprisingly touchscreen worked again. I tried installing other ROMs after that and touchscreen worked only with orange firmware. So i am stuck with android 2.1
I am not that good with android but i don't understand how is it possible that JOHN77_V5 worked only first time and doesn't work now.