Go to System/ Mouse/ Touchpad tab, there you can enable two finger scrolling. I 
had problem similar to yours after kernel upgrade to 2.6.32-33. The upgrade set 
touchpad to "edge scrolling" so I've ganged it back to "two finger". Hope this 
helps.
BR, Jacek

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https://bugs.launchpad.net/bugs/811962

Title:
  Multitouch on Laptop tuchpad is not working anymore.

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