This was fixed in quantal with the following commit:
http://cgit.freedesktop.org/xorg/xserver/commit/?id=1bf81af4a6be1113bcc3b940ab264d5c9e0f0c5d
The only thing is you need to specify the panning resolution when using
the scale parameter. For example, instead of using the following to
scale a 1024x600 netbook screen:
xrandr --output LVDS1 --scale 1.25x1.25
you need to use:
xrandr --output LVDS1 --panning 1280x750 --scale 1.25x1.25
** Also affects: xorg-server (Ubuntu Precise)
Importance: Undecided
Status: New
** Also affects: xorg-server (Ubuntu Quantal)
Importance: Undecided
Status: New
** Also affects: xorg-server (Ubuntu Raring)
Importance: Low
Status: Triaged
** Changed in: xorg-server (Ubuntu Quantal)
Status: New => Fix Released
** Changed in: xorg-server (Ubuntu Raring)
Status: Triaged => Fix Released
** Changed in: xorg-server (Ubuntu Precise)
Status: New => Triaged
** Changed in: xorg-server (Ubuntu Precise)
Importance: Undecided => Low
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which is subscribed to xorg-server in Ubuntu.
https://bugs.launchpad.net/bugs/883319
Title:
xrandr --scale restricts area in which mouse moves
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