The good news are that the hard buttons on the new remote are better than the old one. I mean, they are more responsive at the touch. In the old one I had to press really hard the buttons to make them work (the mute button never worked at all), now I simply touch them and the response is immediate, I like that.

I also noticed, the remote is faster than the other.

I still wonder if there was a possible hardware problem... for instance I know on my TSU3000 if you press on certain parts of the case around the screen the remote will sense a button push on the screen. Perhaps something like that was giving intermittant contact.

I once had a tiny bit of grit wedged between the screen surround
and the screen. It wasn't tight enough to cuase problems most of the time but when the unit was held 'a certain way' it caused 'wrong'
buttons to be detected...

Got it out with a whittled toothpick

Back to the problem, again:

My brother came from Oklahoma for the holidays and opened the remote and noticed there were some parts that were not making contact and that was causing the crazy scroll. Those points are not where the buttons contacts are, they are up at the left and right side of the remote and another one next to the navigation buttons.

He used some folded paper in those areas to make pressure and the problem was fixed (That's why the scroll stopped when I pressed one of the firm buttons, maybe this was making the needed pressure).

He had to eliminate the light button though, apparently that contact was damage too and contributing to the problem. Now I won't be able to adjust the contrast, but I never had the need to do it anyway, so I won't miss it.

When he gave the remote to me I downloaded the latest firmware and everything was back to normal. I now have two TSU3000's and a TS1000.

Daniel was right, it was a hardware problem. It seems that those contacts were wearing away by the years.

Well, end of the story. Thanks!

Yes, I was about to comment, similar to that of JohnGrayson. Run a busines card all around the edge of the screen and get under the screen as far as you can. You will often be surprised at the amount of debris that can get under the edge of the screen, often causing crazy things. However, you did find the fix. Maybe this will help others down the road.

Dave