I can confirm this bug -- also using built-in Intel 3400 graphics on a
Sandybridge processor. Similar problems -- although, instead of getting
a mousepointer stuck on the edge of the screen, the whole thing often
goes blank.

This patched package linked by doowttam fixed the issue for me, until an
update came through the regular repos, replaced the fixed version, and
screwed everything up again. I hope it gets fixed in downstream soon!
(Yes, I know I can hold the package version, but I would like to get
updates when they come.)

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https://bugs.launchpad.net/bugs/921236

Title:
  [12.04 Xorg, xserver 1.11.3] Dual monitor, after entering password,
  mouse pointer stuck on LHS of screen, no desktop.

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