I can confirm this bug, no vertical scrolling. (hardy alpha-3 live-cd session)
After adding:
Section "InputDevice"
Identifier "Synaptics Touchpad"
Driver "synaptics"
Option "SendCoreEvents" "true"
Option "Device" "/dev/psaux"
Option "Protocol" "auto-dev"
Option "HorizEdgeScroll" "0"
EndSection
in xorg.conf and restarting X it still does not work.
will attach original xorg.conf
** Attachment added: "xorg.conf"
http://launchpadlibrarian.net/11302056/xorg.conf
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[Hardy][Regression] Touchpad vertical scroll does not work
https://bugs.launchpad.net/bugs/173411
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