You might want to try this example to see if you get the basic setup working.
Also, here you can find an interesting explanation of why it is interesting to separate the different blocks, and it may help to figure out where you are having issues.
One good thing about your answer about the OS version you were running the touch succesfully with the browser block, is that we can discard a problem with the module that is serving the touch functionality. It looks like you are having an issue with the configuration.
Let me know how it goes.