This looks to be another dead space bug which was fixed with the mouse
barrier work in X.org.

Indeed, after arranging monitors to replicate the reporter's
configuration, I am not able to reproduce the issue on Precise.  I'm
marking this as fix released.  I do not think barriers is a candidate
for sru, so not nominating backport tasks.

If you'd like to verify the fix is in precise but don't want to install
precise, it should be sufficient to boot a Live USB session, configure
the monitors, and see if it is working properly now.    You can get the
current Live USB desktop image at http://cdimage.ubuntu.com/daily-
live/current/ and create a USB boot drive using usb-creator.

** Package changed: compiz (Ubuntu) => xorg-server (Ubuntu)

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

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https://bugs.launchpad.net/bugs/749664

Title:
  Applications appear off-screen in multi-monitor setups where the
  resolution of the secondary display is greater than that of the
  primary display

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