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A number of Android developers have complaint about the ‘flaky’ multi-touch behavior of the Nexus One touch screen, which differs from the touch screen calibration issues reported on the Google support forums.

I didn’t notice either problem, so far. Even the new pinch-to-zoom feature works flawlessly on my N1.  Then earlier this week the following video surfaced that  shows how to reproduce the problem with an app called Multitouch Visible Test, created by Robert Green of Battery Powered Games.

I downloaded the app from the Android market, and sure enough I was able to reproduce what is shown in the video. It seems that the Nexus One touch screen gets confused when your fingers get too close together on an axis using multi-touch. That’s not something you’d notice when zooming in and out on maps or pictures, but with games this could be an issue.

Is this a hardware or software bug? As it turns out, it’s neither – it’s a limitation of the touch screen hardware used in the Nexus One. The same problem was already reported with the “original” Google phone the G1. The touch screen used in both phones only supports two-finger touch gestures (e.g. pinch, pivot, rotate), so it’s really a side effect of dual-touch vs. multi-touch.

There may be a way to overcome this hardware limitation with an improved software algorithm that better tracks all touch movement, but for now this is a non-issue for my everyday use of the N1.

And all you Droid owners, it’s your time to brag – as this is not a problem on the Motorola Droid.