Run this command in a terminal and then reboot; problem solved:
perl -pi -e 's/(?<=touchpad(.{48}))false/true/'
~/.gconf/desktop/gnome/peripherals/touchpad/%gconf.xml
There ya go.
--
[10.04] Touchpad stops working after login
https://bugs.launchpad.net/bugs/549727
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which is subscribed to xserver-xorg-input-synaptics in ubuntu.
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