Confirm that I have this problem and xserver-xorg-input-synaptics,
v1.1.0.

If I remove the touchpad section from xorg.conf, the Synaptics module still 
loads, so I had to move it:
 mv /usr/lib/xorg/modules/input/synaptics.so ~

After doing this the mouse pointer no longer gets stuck in the upper
left corner.

Attached Xorg.log.

** Attachment added: "Xorg startup and running log."
   http://launchpadlibrarian.net/24002445/Xorg.0.log

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vino: mouse cursor stays in upper left corner
https://bugs.launchpad.net/bugs/337926
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