This has been fixed in Xserver 1.8, which is in Maverick. I'm marking
this as fix-released accordingly. I'll get someone to accept the Lucid
task for tracking the SRU.
** Changed in: xorg-server (Ubuntu)
Status: In Progress => Fix Released
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Mouse movement corrupted with Xinerama enabled
https://bugs.launchpad.net/bugs/563100
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