Samsung Moment :: Keyboard Not Typing / Pressing Letter Highlights Text

It happened 2 times already. I open the slide out keyboard and start typing an email, some letters (like C) does not type so I try a few times clicking the key and it types. then when I hit A the entire text is highlighted and the next character that I type replaces the highlighted text. You can imagine how annoying this can be. I thought I must have done something wrong and examined that the fn key was not pressed (cycled through it by pressing fn 3 times). No luck. I tried the same thing in 5 min and it all worked fine. I am baffled.