I'm having almost the same problem, with 12.04 Precise, for the ETPS/2
Elantech Touchpad, on a different ASUS laptop. The touchpad works fine
except when I use the left touchpad button to grab and move a window the
window doesn't move at all. Sometimes, the window moves a tiny bit (a
few pixels.)

The synaptics driver on my machine is:     xserver-xorg-input-synaptics
1.6.2-1ubuntu1~precise1

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https://bugs.launchpad.net/bugs/943723

Title:
  EeePC 900 "ETPS/2 Elantech Touchpad" stops working after unknown delay

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