It appears to be a hardware issue. The Lumia 800 shows exactly the same behavior with exactly the same chargers.

Not really because when I charge it with some cheap generic ones found in quickie marts it shows this behavior, but I charge with motorola charger in my office and its perfectly fine, at home I use computer to charge it. and I remember someone on one of the thread mentioned it had to do with how the wiring on the outlet was earthed, and well it seems it was the case I used the same charger that showed this on my N9 on different outlets, friends home, in office and my own home and in class. In friends home it is perfect, in office it is perfect but in school and my home it makes the screen go ape ****.

charging with what? If charging with the supplied adapter then it is beside the point... post is about problems charging with non-Nokia charger.

Not exactly. Though I would not say my N9 is unusable when charging (via the Nokia charger that came with my N900), is does indeed affect the screen sensitivity. Can be eratic at times, but mostly can be worked with. Seems like something that would be a recall on a car....not good. How can a device as complicated as this get to consumers without something like this being discovered?

I have experienced this when plugging my n9 into my laptop. I have multiple AC adapters for my laptop and I only experience the symptoms when using one of the adapters. If I unplug the adapter while the n9 is connected via usb, the screen immediately becomes responsive again.