Hi - I have an EEE PC 900A and experience the same "jumpy" or "jerky"
cursor movement with jaunty (notebook remix) -- this problem did not
exist in Intrepid.

$ uname -ra
Linux damon-eee 2.6.28-11-generic #42-Ubuntu SMP Fri Apr 17 01:57:59 UTC 2009 
i686 GNU/Linux

I have not found an xorg.conf solution yet, but am looking for one.
Touchpad is listed as ETPS/2 Elantech Touch (as mentioned above).

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