Im also experiencing this issue.. it just started today.
Haven't had time to fully troubleshoot it yet, but I'm thinking its hardware.
*The Quick Workaround:*
If you need to use your iPad and are having this issue, you can enable multi touch gesture support. The gesture for 'home' is labelled 'pinch' in the description, but its actaully a 4 finger pinch, so you need to do a Star Trek-esque finger movement to get it to work.
Multitouch gesture support is an experimental feature in iOS 4.3 for the iPad. It needs to be enable on the iPad using a program called Xcode before you can use it.
*Enabling Gesture Support:* (only works on computers running OSX)
First: You need to get Xcode (a developer tool made by Apple)
You can either install xcode from the Mac App store for $5
OR
You can install xcode 3.2 for free here:
http://developer.apple.com/xcode/ Click the link at the bottom of the page that says "looking for Xcode3?"
NEXT:
- Once Xcode is installed:
- Plug in Ipad, and open Xcode
- Xcode will pop up with a general iPad device management screen that looks a lot like the one in iTunes.
- Click the button that says "Use for Development"
- Xcode will ask you for your apple credentials. Apparently you can just click cancel and ignore the error messages, I just logged into my account and followed the instructions. Either way it should work.
- After you log in or exit out of the error messages, Xcode will unlock the settings in your iPad (takes about 10-30 seconds).
Once Xcode is finished, the setting will appear in general settings app..
I'll let you guys know if I actually find a fix to this problem, until then just remember: "Live long and Prosper"