Unexpected Corona Result

config.lua

application =
{
	content =
	{
		width = 320,
		height = 480,
		scale = "zoomEven"
              --scale = "letterbox" -- Also Fails :[
	},
}

main.lua

display.setStatusBar( display.HiddenStatusBar )
system.activate( "multitouch" ) -- comment this out to see expected result

local a = display.newCircle(100,100,20)
a:setFillColor(0,255,0)
local b = display.newCircle(200,200,20)
b:setFillColor(255,0,0)

a:addEventListener("touch", function(e)
	display.getCurrentStage():setFocus(a, e.id)
	a.x = e.xStart
	a.y = e.yStart
	b.x = e.x
	b.y = e.y
end)