Hi - I had a similar trouble. Using an external keyer or ye olde faithful Junkers key allowed perfect operation, yet when I tried using a paddle direct, hitting either did or dah resulted in the rig getting stuck in transmitting dahs until I switched it off. Resets did not solve the trouble, rechecks of solderings etc revealed no problems, and I sent the rig in to QRPproject asking for their help. I heard from a ham more familiar with the cpu used in the KX-1 that one could not exclude a faulty PIC chip.
So, cannot give you a solution but just assure that you are apparently not alone with this kind of trouble.
vy73 Fred DL6XAZ KX-1 #0808
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