[monkeyboy]

Then there is something funky with your Touch, or with your copy of Picsel (corrupted?)

I had been using (off and on) Picsel 1.02 on my Touch. This version 1.2 is definitely better, and both run "fine" on my Touch, well, at least they seem to be function as they should, except for their inability to initiate a data connection.

So yeah, something is definitely wrong with your Touch and/or your copy of Picsel.