I found some other threads with the same issue on some other forums. This is what seems to be the problem/fix.

OK, I finally got it, at least for now, thanks to (roys89). It's the display driver error. What I did was using XS++, then FSX, then start FSX, then /your phone/ifs/settings/display, at there u should see dispdriver0.dat. Now that's the driver I replaced using w910 display driver which can be found at RapidShare: Easy Filehosting

after the download, extract the file, go to Systems\W910_R1CA031\ifs\settings\display\dispdriv er0.dat. Now drag this dispdriver0 in the XS++ and replace the old one. click shut down, unplug the phone. The phone should be good to go now.

again, credit goes to roys89.

note-the phone freeze when trying to access the camera, but it's still heck alot better than a broken screen.
I'm going to try this now. Although I wish I could find the w580i display driver to still have a working camera.

Link to other threads...
Pleas Help - SE-NSE Forums
Debranded W580i: Graphics=WTF HELP? [I TOOK PICS] - SE-NSE Forums