What you need:
1) Install ES file explorer from Google Play
2) Install Android Terminal Emulator from Google Play
3) Download this kit I made for you. It has the init.d script and the touch.ko module
http://www.freak-tab.de/finless/touch1.zip
4) Unzip this file and copy touch.ko and 01touch to your SDcard.
5) Run ES File Explorer and go into settings in ES file explorer and at the bottom Root settings
Turn on Root Explorer. Be sure to answer YES to the SuperUser prompt
Turn on Up to Root
Turn on Mount system RW
6) Using ES file Explorer navigate to your SDcard.
7) Long press on the touch.ko file and select copy
8) Back up to root and go into /system/lib/modules and press the paste button. ES file explorer should say file copied successfully. Now ES has a little bug. You wont see the file in there. So back up one directory level and go back into /modules and now you will see it. (They need to fix that bug!)
9) Long press on the touch.ko file and in the list scroll down to the bottom and select properties
10) In this dialog click the "change" button to set permissions
11) Set all the READ boxes. Set the first WRITE box. Leave the other boxes unchecked
OK KO module is now ready.
12) Navigate back to your SDcard and long press on 01touch. Select copy
13) back up to root and navigate to /system/etc/init.d
14) Press the paste button and ES file explorer should say filed copied successfully. Now again, ES has a little bug. You wont see the file in there. So back up one directory level and go back into /init.d and now you will see it.
15) Long press on the 01touch file and again select properties from the list.
16) Again click the change button to set permissions
17) This time click ALL the boxes except the last WRITE box.
OK init.d script is ready!
Now lets test that the init.d script worked and the module is injected into the kernel
1) Reboot
2) Run Android Terminal Emulator
3) At the prompt type
su
4) Remember to say YES to the SuperUser root prompt!
5) Now type
lsmod
6) It will list all install KO modules. In the list you should see virtual_touchscreen