This bug was fixed in the package xorg-server - 2:1.13.1.901-0ubuntu2

---------------
xorg-server (2:1.13.1.901-0ubuntu2) raring; urgency=low

  * Add 237_dix_save_touchpoint_last_coords_before_transform.patch:
    Fix sensitive touch settings on Nexus 7 when input is transformed.
    (LP: #1075415, #1076567, #1076627)
 -- Bryce Harrington <[email protected]>   Tue, 22 Jan 2013 13:51:16 -0800

** Changed in: xorg-server (Ubuntu)
       Status: In Progress => Fix Released

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https://bugs.launchpad.net/bugs/1076567

Title:
  When in portrait mode, touches don't cause click actions, just drags

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