I would like to second the above statements about the bug still being
present in (L)Ubuntu 12.04 with Xorg-Server 2:1.11.4. I am using a
eGalax Inc. USB TouchController like Jon Szymaniak. So I had a script
calling xinput to set-props 'Evdev Axis Inversion' as well as
'Coordinate Transformation Matrix'. However, even without the axis
inversion, the pointer erratically jumps around the location pressed. So
it definitively seems to be an issue with applying the transformation
matrix.

Using the combined "xinput set-props 'EvdevAxis Inversion' 1 0" and
'Option "Calibration" "105 1927 190 1857"' in xorg.conf.d/99.conf
however gives me a decently calibrated, working touch screen without the
flickering pointer.

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https://bugs.launchpad.net/bugs/774938

Title:
  Erratic cursor movement when using "Coordinate Transformation Matrix"

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