Thousands of users have complained about some windows mobile device getting stuck up in the alignment screen infinitely, mostly after a hard reset of a faulty touch screen device. My imate Kjam was ‘paper weighted’ for almost an year because of this. But I finally found a solution.

First you have to connect the device to your PC through USB and ActiveSync.
Now you can use the Remote Registry Editor that comes with Visual studio to connect to your device and now navigate to

HKEY_LOCAL_MACHINE\HARDWARE\DEVICEMAP\TOUCH and edit the value "MaxCalError" . This is the value that determines how much error is acceptable. Try increasing in steps of 16.

I set the value of MaxCalError to 256 and then the screen alignment was completed in a single try. Now the stylus is not working perfectly but i dont care much as there is a built in querty keyboard on my Kjam. Thanks for the help.