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Well, just for curiosity, I find it perfectly reasonable to run the laptop from power and just disconnect the power cable while using the fader.  BUT I'm only working with voice overs and music beds, not instrument mixes, so I can understand this being much more painful in that situation.  I've gotta say that all in all I'm satisfied with the device for my needs.  But Frontier, please take note:

You owe it to your current customers to resolve this issue, and either offer a solution or a hardware recall, so we will know that you take our patronage seriously.  And you owe it to your own brand to improve this device, which is a great concept that would be a real world beater if only it worked as advertised.  (I remember the package saying "works great with laptops"...)  I wouldn't buy anything else, unless it offered a touch-strip jog/shuttle - by far my favorite feature, and that works just right.  But the goofy fader and dials do make this thing kind of a JOKE.

For you desktop users - there must be something wrong with either your motherboard or power supply if the ground is not being properly supplied to the USB ports.  Replacing them is a simple fix, but costly and time consuming, and there's no easy way to know WHICH is the culprit.

UPDATE: Just found out, with my external hard-drive connected (Maxtor One-Touch 250GB) it behaves the same whether the computer is powered or not.  Now THIS is ridiculous, this means I can't use the fader while working with files from the hard-drive.  I'm starting to think hard about whether to keep this device... :(

GOOD NEWS LAPTOP USERS - I HAVE FOUND A SOLUTION FOR THIS PROBLEM

No it is not the most convenient, but it does make the product PERFECTLY USABLE.  With my laptop, all I had to do was disconnect the power and operate from the battery.  This makes the touch sensitivity on the AlphaTrack completely stable, and proves without a shadow of a doubt that my unit is suffering from grounding issues.  Granted I'm not exactly thrilled about having to remove my power cable to do precision fades...

Hi, just wanted to corroborate that I am having this problem as well.  I'm using a Sony VAIO, Centrino chipset, no other devices connected, running from AC power (no grounding pin, since it's a laptop).  I'm primarily using Cubase, and this happens with the latest driver, .7, and the earlier .4 drivers from a couple years ago.  I've also tried the latest release of Reaper, and this doesn't occur, but Reaper tends to use a minimum of the AT's features.  I'm going to try using a powered USB hub to see if this corrects the problem, if anyone else comes up with a solution I'd sure like to know about it.  I've been looking forward to buying one of these and I'm a little let down by the buggyness of the touch-sensitivity.