Cool, thanks for the comments everyone.
Alright, I hope to get my R4 soon so I can fix this -- going to move the icons and see if dithering the images to 256 colors will help with the banding. Thanks for the headsup.
I'm not going to spoil it for people who haven't played this through but at one point in the game, you actually need to use the stylus to complete a small task in order for the story to advance.