OK, we don't know what sort of touch screen it is, who makes it, what the calibration procedure is, whether it worked, what type of computer it's on (or if it's on a computer -- laptop or desktop), what operating system is in use, and whether or not you're using the provided software etc.
We do know that it's connected because it's obviously responding to inputs.
(How we love puzzles here!)
Looking through my crystal ball, I'll assume that you've converted to touchscreen something like an Eee PC running Windows, where the device is attached to the front of the LCD screen (behind the bezel), and connected internally.
How was my guess?
In the absence of much information, my guess is that you didn't calibrate it correctly and that the touch screen now thinks that all clicks are coming from the lower left corner of the screen.
Typically the calibration involves clicking on something near the top left and bottom right (or some other pair of diagonally opposite points). From this the panel can determine its orientation and scaling factors.
I would not rule out such things as installing the device upside-down or around the wrong way (i.e. sensitive surface inwards), or even that the software is incompatible with your computer or other software, or that the hardware is incorrectly installed in such a way that something is being shorted out.
Or, maybe, the controller is bad. It wouldn't be my first guess though.
