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Help poor screen functionality when charging

When I have my Nexus One charging, the touchscreen no longer functions properly.
For example: when the slide lock is enabled and I try to unlock the phone while its charging, it acts as if I'm touching each circle individually.
But thats not consistently the case, sometimes I can unlock the phone successfully.
But generally if I do get it unlocked and start using some apps, I run into issues with the screen again and the phone becomes unusable: letters pressed when typing a message are duplicated; it jitters and gets stuck between screens when sliding across homescreens; the 4 main buttons on the bottom don't respond to being pressed; I've even managed to get to a point where I simply have a black screen and the status bar at the top.

All these issues go away after I unplug the phone and wait a few seconds for the charging to "disengage".
 
I bought a off-brand charger for my N1 off e-bay for $5 and its the only charger that gives me the same problem. The screen is basically unusable for anything but once disconnected the screen works fine. My wife's charger for her Motorola Cliq doesn't cause the problem nor does the charger that came with my N1.
I did find that this little adapter that converts a MINI-USB to micro-USB will just shut my phone off the second its plugged in but works for charging her cliq. Weird.
 
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