Reproduced on Ubuntu precise under Unity using an Intel gfx laptop with
external monitor and LVDS turned off.

This is upstream bug https://bugs.freedesktop.org/show_bug.cgi?id=39949.
Three patches have been proposed for fixing this but appear not to yet
be in the upstream codebase:

http://patchwork.freedesktop.org/patch/6488/
http://patchwork.freedesktop.org/patch/6217/
http://patchwork.freedesktop.org/patch/6209/

** Tags removed: compiz-0.9 needs-reassignment
** Tags added: precise

** Also affects: xorg-server via
   https://bugs.freedesktop.org/show_bug.cgi?id=39949
   Importance: Unknown
       Status: Unknown

** Changed in: xorg-server (Ubuntu)
   Importance: Undecided => Low

** Changed in: xorg-server (Ubuntu)
       Status: Confirmed => Triaged

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https://bugs.launchpad.net/bugs/881046

Title:
  Panning in a virtual monitor is not possible after upgrade to Ubuntu
  11.10

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