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Thanks. I tried that, but the problem still persists. When I touch an app, a box appears around it. Then I have to double tap to get it to opwn, etc. I managed to get to my settings, but cannot scroll or find the keyboard settings. Any other ideas?
I can't believe no one's understood this yet! What's happened is that VoiceOver is on. Triple-tap the Home button and double tap VoiceOver to turn it off. If this doesn't work, go to Settings then to Accessibility and turn VoiceOver off there.
VoiceOver is an accessibility feature designed to help people who have trouble seeing or using the screen. The double-tap is used to confirm input. The reason you couldn't scroll is also because it requires two fingers to scroll. Turning this off should solve your problem.
And finally, as others said, reset it if you have problems with it beyond this, or take it to an Apple Store for service.
I hope this helps clarify the whole situation a lot better.