dead zone for mouse events in iOS AIR

It seems that I cannot get mouse events for the bottommost rows of pixels in an iOS app (table & phone). If I have a 1024x768 flash app compiled in AIR on a iPad 3, I don't get any mouse event with a y coordinate larger than 763. On an iPhone the dead zone is much larger ~20 pixels. This happens even with a test app that does nothing but listen on mouse events and trace the results.

Android tablet seems to work correctly.

Any suggestions are appreciated!