Why is my screen flickering when I wake it from standby?

I have an iPod touch 64gb, jailbroken with redsn0w, and I have been having problems with both my screen flickering with white lines after I wake it from standby. As well, my home button sometimes feels unresponsive and laggy.

I am reasonably sure that the jailbreaking is not the cause off the issues, because even though I have made many modifications to the file system, and other aspects of the firmware, I have gone through both an iTunes restore and a DFU restore, which fully erases the file system, and the problem still persists.

I do not want to trade my iPod in to Apple because if they give me a new unit I will not be able to jailbreak until a new exploit is released. So I am now wondering if I need a new LCD/Digitizer, or if there is some trick I can use on my own to solve the problems.

Thank you for your time.

- A worried iPod touch user