For anyone looking for a simple solution on Precise:
* Make sure ccsm is installed (sudo apt-get install 
compizconfig-settings-manager)
* Open ccsm
* Search for Unity
* Disable 'Unity MT grab handles'

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https://bugs.launchpad.net/bugs/754000

Title:
  Running Unity disables Xorg's 3-finger click support (middle click)

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