This may well be the same issue and has some discussion of the cause.
https://bugzilla.redhat.com/show_bug.cgi?id=655212

** Bug watch added: Red Hat Bugzilla #655212
   https://bugzilla.redhat.com/show_bug.cgi?id=655212

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https://bugs.launchpad.net/bugs/881046

Title:
  Panning in a virtual monitor is not possible after upgrade to Ubuntu
  11.10

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