Same issue on my mom's laptop after recent upgrade to Feisty.  Attempting to 
switch users yields same "Synaptics Touchpad can't grab event device, 
errno=1022" - although both X processes are identified by fuser as having locks 
on /dev/input/event1
xorg.conf has been untouched since  dpkg-reconfigure

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Synaptics touchpad not enabled for second X display
https://bugs.launchpad.net/bugs/68370
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