Review: Motorola Droid
The Droid uses a capacitive touch display, as do most Android phones. The Droid's touch interface was a little bit twitchy. I don't know if it was as screen issue or a processor/system issue, but every so often there were short gaps between pressing the screen and having the Droid react to what you wanted.
I noticed some slight stuttering and lag in screen transitions, especially from the home screen. Many will blame the processor for this. The Droid runs a Cortex A8 processor at 550MHz. Motorola claims that the processor can run up to 600MHz when required by certain tasks; 550MHz is merely the base speed.
Tech mumbo-jumbo aside, you may notice some laginess in the user interface and it isn't necessarily related to a bad touch screen.