Well, when my Eris did the same thing, I took it in to the Verizon store, and they tried to fix it there on the spot, but when they couldn't, I got a free replacement then and there.
However, since you're rooted, taking it to the Verizon store won't work, unless you unroot. But even then, the 'Like-New Refurb' will almost surely come with HBOOT 1.49, which right now is very difficult to root.
I don't know what to tell ya, sorry.
EDIT: The employee at the store told me that my trackball issue had to do with water damage; like even having it in the bathroom while I shower may get some moisture inside it.