confirmed exactly the same behaviour currently being experienced on a
Dell XPS M1530. Without the boot option, the trackpad does the funky
chicken and with the boot option it works, but so slowly as to be
unusable. This is on 8.10 with all updates as of 25/10/2008.

Interestingly enough the livecd worked perfectly ...

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Touchpad in Dell XPS M1530 unusable - Intrepid Beta (was Hardy Beta)
https://bugs.launchpad.net/bugs/216797
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