I got the new pencil today, charged it up. Even rebooted the ipad and it skipped right away doing "S" letters. So it's not a bad pencil. I even loaded up OneNote right after and it skipped in there too, so I know it's not the app because OneNote has palm rejection in the app.
Sounds like the ipad has crappy palm rejection. Very dissapointed. This is why I bought the ipad again was so stuff like this doesn't happen. This never happens if I have my palm off the glass. Maybe without hands 90 degrees up in the air is how these ipads can handle writing. Absolutely pathetic.
I highly doubt Apple will let me to exchange the ipad for another new one since sometimes i have to write "S" fifty times before it skips. Sometimes it skips on just the 10th time I write "S". But they may not consider this to be defective hardware if it never happens if my hand is off the glass.