I can confirm that this issue affects my system also, with both versions
of the nvidia drivers provided by the "Hardware Drivers" applet. It may
be coincidental, but when running multi-head (xinerama on) with the
nvidia drivers I also observe this issue:
https://bugs.launchpad.net/ubuntu/+bug/358889 . If I switch to the nv
drivers, the mouse pointer related bugs go away.

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Xinerama - Touchpad can't move the cursor to the left screen
https://bugs.launchpad.net/bugs/366844
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