I know its been a long, long time since you posted your message, but I do have a solution for you :).
Go to the little icon on the bottom right hand corner of your screen that looks like a test-pattern, (to the left of the acorn). Center click. now set your screen to the lowest setting (I think it's 16). The screen will flash a little bit, then quickly return and everything will look slightly bigger. Paradroid will now work!!!!!