going to lock screen freezes touchscreen

Hi I have been having issues since Monday with my d3.

whenever I touch the power button to turn of the screen and then bring it up again using the same button the touchscreen will freeze and doesn't unlock or let me turn silent mode on or off. but the rest of the phone works fine I can open the keyboard and go to things but I have no back button so i have to reboot and start over. I even installed the no screen lock app and when I press the button the power button again it freezes the touchscreen without the unlock menu. the screen doesn't jitter or press random things like a usual broken screen or digitizer.

I have pulled the battery multiple times and restored to factory settings.
The phone is rooted but is using stock rom and no new apps just factory.

my year warranty just expired so any ideas are much appreciated. :)

Update: It also happens when I get a phone call or the screen times out. Seems like if the screen turns of the touchscreen freezes

I'm wondering if I unroot and re flash to stock from a fresh hard drive it could solve the problem ( like reformatting a pc and starting with a fresh os?) Hopefully that's different then a (reset to factory)