I can confirm that the workaround in #35 works! I just had to add that line to 
the Device section of xorg.conf where the nvidia card is configured (at first I 
thougth it should be in the input section but it seems that the problem is more 
related to the graphic drivers, not the mouse management.
The only problem is that it didn't work in my user xorg.conf (the hidden one in 
my home folder) but editing /etc/X11/xorg.conf worked perfectly. Thanks a lot 
Doug! Please spread the fix because the last weeks I've been googling for a 
solution I've noticed an increasing number of people having this problem and 
this is the first real solution I've found.
I'm still Waiting for an nvidia update but at least my desktop is useful again. 
Unity without the launcher is a real show stopper.
I've also used tabulation between the words Option and "ConstrainCursor" 
instead of a single space (I'm not sure if it makes any difference, just wanted 
to make sure the line had the same structure that the rest of the file).
Good luck everyone.

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You received this bug notification because you are a member of Desktop
Packages, which is subscribed to nvidia-graphics-drivers in Ubuntu.
https://bugs.launchpad.net/bugs/1057000

Title:
  [Ubuntu 12.04.1/12.10] nVidia drivers 304.51 prevent autohidden Unity
  launcher from revealing

Status in NVIDIA Drivers Ubuntu:
  Confirmed
Status in Unity:
  Confirmed
Status in “nvidia-graphics-drivers” package in Ubuntu:
  Triaged
Status in “xorg-server” package in Ubuntu:
  Triaged
Status in “nvidia-graphics-drivers” source package in Quantal:
  Triaged
Status in “xorg-server” source package in Quantal:
  Triaged

Bug description:
  The bug is as described in the title. Reverting to drivers 304.43
  solves the problem.

  This report is intended primarily for those suffering from this bug
  and not knowing how to solve it. Today I also reported it to nVidia,
  but it will take time for them to respond and fix it.

To manage notifications about this bug go to:
https://bugs.launchpad.net/nvidia-drivers-ubuntu/+bug/1057000/+subscriptions

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