I can confirm that upgrading to the xorg-edgers PPA  fixed this problem for me
on a Dell Latitude D400.

  sudo add-apt-repository  ppa:xorg-edgers/ppa 
  sudo apt-get update
  sudo apt-get upgrade

and then restart gdm or the whole machine.

-- 
netbook launcher mouse focus is off
https://bugs.launchpad.net/bugs/368394
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which is subscribed to xserver-xorg-video-intel in ubuntu.

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