I saw this issue on a Zepto Znote 3215W on Jaunty and Karmic. I think
this is due to a new driver for the Elantech touchpads. In older
releases (without the driver) they operated in imps compatibility mode -
the workaround forces them into this mode.
Scrolling at the side of the pad stopped working but two-finger-
scrolling works now by default. Could you test whether that is the case
in your configurations, too? (Don't forget to remove the workaround
before testing.)

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[jaunty] elantech touchpad does not scroll
https://bugs.launchpad.net/bugs/346645
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