This particular bug was indeed fixed in Ubuntu 12.04:
xorg-server (2:1.11.4-0ubuntu10.12) precise-proposed; urgency=low
* debian/patches/238-xrandr-fix-panning.patch: disable CRTC cursor
confinement when panning is enabled. (LP: #883319)
-- Marc Deslauriers <marc.deslauri...@ubuntu.com> Tue, 12 Feb 2013
16:45:02 -0500
If you are seeing similar symptoms in a more recent release, it's likely to be
a different bug altogether.
Please file a new bug so the issue actually gets fixed instead of commenting in
a bug that has been long closed and doesn't show up on any bug lists anymore.
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https://bugs.launchpad.net/bugs/883319
Title:
xrandr --scale restricts area in which mouse moves
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