Problem still exists in 9.10.  Jumpy touchpad and no multi-touch support
after a fresh install.  I'm using this line in /etc/modprobe.d/options
to fix:

options psmouse proto=exps

-- 
[Jaunty Beta] cursor jumps when using touchpad on Eee PC 900A
https://bugs.launchpad.net/bugs/355326
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