Thank you for the detailed description! The "No shadow window found" error is one that Arthur has been working on. Your details will be very helpful to him.

We have seen the pixelization before (usually after a death/burial). It doesn't sound like any of your villagers had died yet, though. If you exit the game and launch it again, the problem will be cleared up.

How long had the game been running continuously (without an exit to another app or the Palm launcher)? It sounds like, from your description, that it had been quite awhile. The game is only saved upon exit to another app or to the launcher, so you will lose any event, babies, etc. that occurred after the last save. When you launch Village Sim, the game recalculates everything from the point of the last save, which could be drastically different from your actual game state prior to the crash. We know that villager productivity is lower when the game is off, and when you restarted the game after the soft reset, the game treated the interval between your last save and the current time as if the device had been off the entire time. We're doing detailed tests, and hopefully the on/off balance will be much better when the update is released!