Yes, the proposed package fixes this bug.  I booted off of the Quantal
live CD, upgraded xserver-xorg-core and xserver-common to the proposed
version, used 'gnome-session-quit' to cause X to exit and respawn, then
logged in again as the ubuntu user to test it out.

** Tags added: verification-done

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https://bugs.launchpad.net/bugs/1041063

Title:
  mouse pointer periodically leaps to left and top of screen with
  absolute pointing devices

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