Some letters suddenly stopped working on my soft keyboard. W and e do not work. Q and r both light up. S does not work a and d light up. Z does not work shift and x light up. This portrait mode. In landscape mode backspace and shift do not work.
There is a free app in the market called touch test. Give it a try and try the test on the areas that you seem to have an issue with. This will tell you if you have a hardware problem with the screen. If the test shows that the screen works in the dead areas where your keyboard did not a reset might help clear it up. Let me know what happens.
Simply go to Settings > Language and Input > ASUS keyboard (the settings icon near it) > untick "Next Word Prediction"