Saw this that might help
""...I finally stumbled upon the solutions to both forms of touch screen failure - the failure upon closing the lid and more semi-permanent failure - are both caused by simple, stupid bugs arising from the particular combination of Asus' touch screen interface design and Windows' USB power management algorithms. If your touch screen is going out when you close the lid, you probably have set the computer's power settings so that it "does nothing" upon closing the lid. Changing this setting to "sleep" - after first restoring touch functionality, of course - fixed the problem instantly and permanently for me, though this will probably only work if you first go into the Windows Device Manager and find the touch screen device - it's a "USB Input Device" under the "Human Interface Devices" heading - right click and go to "Properties", go to the "Power Management" tab, and uncheck "Allow the computer to turn off this device to save power". The more permanent-seeming touch screen failure was instantly resolved by disabling the "USB Selective Suspend" feature in the power settings and cold-booting. So if you're having touch screen problems, chances are excellent that your touch screen is actually fine, and all you need to do is change all the settings as I've indicated here, cold-booting first if necessary to bring the touch screen back to life before you start. Hope this helps someone! "