Problem with the buttons got fixed. The problem was with HTC sense. I just cleared the data. Just in case if any one else has similar problem, Here are the steps -
1) Go in Setting-Applications-Manage Applications.
2) Select Running tab.
3) Scroll down to HTC Sense. Tap on it.
4) Tap on Clear data button.
5) Turn off and Restart the HTC Evo.

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