Touch Screen Alignment Issue PLEASE HELP!!

[volsvegasking]

So I bought a touch diamond used from a guy that lived near me. The phone is in perfect condition. I turned it on and used it for a little bit maybe 30 mins. Being the lazy person I am I went to the system tab in settings and did the clear storage to take all his things off the phone to prevent me from having to do it all manually which would have taken hours.. Now I have reset the phone. It goes through the prompts. Loads the windows mobile screen then gets to the tap the screen to do the settings. I get to the screen alignment and I am having a problem getting past it. I will touch it with my finger then I will use the stylist very firm and not at an angle but it will not get past the alignment screen. I have called htc and a guy told me to update the rom (which I did). Still had no help to the problem. It keeps getting stuck at that screen and taking me back. I honestly dont feel like sending it in for repair seeing that it will take a long time. I love this phone from what I messed with it. I just dont know what to do. The phone seems to run good besides the getting stuck on the alignment screen. Does anyone know how to fix this issue?