Solved part of problem by commenting out the line in 
/etc/modprobe.d/psmouse.conf 
"options psmouse proto=exps"
now gsynaptics and synclient start working

next i set up 
$ synclient EmulateTwoFingerMinZ=45 EmulateTwoFingerMinW=10
and 2-finger scrolling started working as should be.

-- 
multi-touch not working on acer 1410, karmik
https://bugs.launchpad.net/bugs/552699
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