I have the eleduino 7" touchscreen. The image with pre-installed driver they ship it with disable the GPIO pins. Touchscreen works in Kivy though. I was helped here by TMWILSON26 who referred me to the custom drivers of derekhe.
Did a fresh install of wheezy. Installed the custom drivers and the touch screen works. Installed kivy without any problems. It works with all the python games in X, it works everywhere except in any Kivy app. Doesn't matter if I run the kivy app with 'sudo' or not. It also doesn't matter if I don't run 'startx'.
Added the 3 lines:
mouse = mouse mtdev_%(name)s = probesysfs,provider=mtdev hid_%(name)s = probesysfs,provider=hidinput
still doesn't work. Help! :-)