I got the same bug with compiz, AIGLX and nvidia drivers on feisty.
Actually the problem is not with the autoscrolling feature but with firefox's 
rendering of "position: fixed" styled elements. (The multi-arrow circle which 
is displayed using autoscrolling is actually implemented as an element in the 
webpage with that css property)

See this page and the attched screenshot :
http://developer.gnome.org/doc/API/2.0/glib/index.html
(The banner on top has the same "position: fixed" style property)

** Attachment added: "Screenshot of the bug"
   http://librarian.launchpad.net/7365865/Screenshot.png

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compiz:  firefox autoscrolling cursor leaves trailing marks
https://bugs.launchpad.net/bugs/58622
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