I struggled with this for some time. With xinerama, I experienced this
cursor wierdness, and other symptoms too. Xrandr was failing, and due to
this, my power indicator also went missing, and I couldn't use Unity 3d
- it was reverting me to Unity 2d. I tried twinview and also xinerama,
and I wasn't happy with either of those options. In the end, what I
ended up doing was purging all things nvidia* from my system, deleted
the xorg.conf file completely, and then I installed the nvidia-current
package. After that, everything works beautifuly. Unity 3d is back,
xrandr functions correctly, my power indicator is there, and I can use
both my monitors. I've had it fixed for a while and I'm happy now.

So I'll leave this here, for anyone that's looking for an answer, the
steps that fixed it for me. Do this at your own risk, and make backups
first, but my fix went like this:

* Ctrl-Alt F1 to switch to console, and login there
* sudo service lightdm stop
* sudo apt-get purge nvidia*
* sudo rm /etc/X11/xorg.conf
* sudo apt-get install nvidia-current
* sudo shutdown -r now

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https://bugs.launchpad.net/bugs/986835

Title:
  Cursor jumps to left/right side of screen when moving from one monitor
  to another

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