Yes, thats definitely it.  I have the same thing.  My resolution is
1920x1200 but the max values are 1023 and 767.  I have an ALPS
Glidepoint touchpad (as reported by 'xinput list') on a Dell Latitude
D830.

I have upgraded to Karmic since this bug was filed and it still exists.

-- 
mouse pointer no longer has 1 pixel precision
https://bugs.launchpad.net/bugs/327428
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which is subscribed to xserver-xorg-input-synaptics in ubuntu.

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