the ts-config file you are using might not be right one and is causing touch screen issues, but you didnt say what phone you are using :S
The screen darkens because you have the auto-backlit turned on in windows mobile, turn this off
it wont boot into android because well, the phone isnt android :S, use this to boot into it
[APP][25MAR10]Gen.Y DualBOOT v1.0.6.0[W|Q|VGA][CAB|EXT] - xda-developers