*** This bug is a duplicate of bug 355326 ***
https://bugs.launchpad.net/bugs/355326
This is indeed a duplicate of Bug #355326. The fix worked for me too.
** This bug has been marked a duplicate of bug 355326
[Jaunty Beta] cursor jumps when using touchpad on Eee PC 900A
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Touchpad erratic and slow ASUS 701SD
https://bugs.launchpad.net/bugs/356168
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