I have a Kortek MLD that's given me fits as well. It's out of a G23 and it's a KTL220MD-03 3M microtouch controller. the -03 indicates it's a 3M if you have a -04 then it's a digitouch. Mine had worked well since I got the machine and then one day it went out of whack. I tried recalibrating it and got the same results. It may be a little better at first, but would quickly drift back out. I finally tore the monitor apart to look everything over. When I put it back together it worked again, but it didn't last long.
I found a 3M touchscreen calibration tool on the internet. I downloaded it and one of my laptops supported the screen resolution of the MLD screen so I used it to clear and re-calibrate it again. It used a multi-point calibration touching targets every 3 inches or so from the top left all the way to to the bottom right corner. That didn't help either. One thing I did notice though was moving the touchscreen cable around where it meets the amber ribbon cable would change the way the touchscreen responded. I don't know if it's picking up interference or something but it definitely would change it. So I tore the monitor apart, re-routed the cable some, recalibrated it and it worked again.....for a about a week
. It really messes you up playing the bottle shoot bonus round on Western Stars! My touchscreen is only a couple of years old so I'm convinced it's probably the touchscreen controller that's causing the problem, but I haven't been able to locate an exact replacement.
In the meantime I had a spare monitor and I put that in. It's been working great and actually looks brighter and sharper than my original monitor so I put it on the back burner. Since I couldn't an exact replacement I bought one that is USB, but attaches directly to the touchscreen ribbon cable instead of mating with the white cable that has the odd connector with two rows of female pins on it. Since that cable is short it I'll have to mount it on the outside of the monitor and then the USB cable will plug directly into the cabinet controller board instead of the USB port on the bottom of the monitor. I just haven't gotten around do doing it yet since it's such a pain in the ass replacing the monitor and I have a working setup now. I'd almost rather get kicked in the balls then have to swap it out again
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Here's a few pics of my existing controller and the one I bought.
Let us know if you figure yours out and if/when I do get around replacing my controller I'll let ya know if it made a lasting difference or not.