I was suffering from this bug after an upgrade to 12.04. By downgrading
to version xserver-xorg-input-evdev 1:2.6.99.901-1ubuntu3~lp921236
(which I pulled from here
https://launchpad.net/~sarvatt/+archive/sru1/+build/3118994) the issue
is fixed.

That is expected, though, because as comment #5 points out, the bug was
fixed quickly with that version. However, version 1:2.7.0-0ubuntu1,
which is what's, shipping causes the same behavior and same error
messages originally reported.

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https://bugs.launchpad.net/bugs/921236

Title:
  [12.04 Xorg, xserver 1.11.3] Dual monitor, after entering password,
  mouse pointer stuck on LHS of screen, no desktop.

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