After doing an ipkg update / ipkg upgrade tonite from
http://mirror1.pdaxrom.org/current I have tab key issues. I was in a good spot so I was able to re-flash and try again and experienced the same issues from scratch. I beleive it's related to the new matchbox packages.
When in X11, using ANY app that allows text input (i.e. aterm, xterm, Abi, etc.) the tab key acts like the Caps Lock key all by itself (without pressing the function key).
BTW, The new package manager is pretty cool. Keep up the good work guys - PDAXROM ROCKS!