I'm also experiencing this bug, or remarkably similar. After using
xsetwacom to perform screen rotation, the Wacom Touch device registers
initial screen presses in the correct location, but upon release the
cursor jumps back to the normal, non-rotated position on the screen.This
creates remarkable inconsistencies in using any UI, since some actions
take place on button-press (click to drag, etc) and some on button-
release (launching programs, etc.)

My system is a Lenovo ThinkPad X61 Tablet, running the release version
of Lucid. Please let me know if there is any other info I can provide to
help!

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Wacom Touch Inverted After Rotation
https://bugs.launchpad.net/bugs/557748
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