The solution for the CTM problem (which is what causes the wacky cursor jumping) is this patch, which was accepted into upstream on 19 Nov 2012; it is not yet in quantal-proposed, but I was able to rebuild xorg-server-1.13.0 (from 12.10) with this patch and the problem went away:
http://<email address hidden>/msg33742.html
There is another version of the patch floating around somewhere if you want to fix 12.04.
The solution for the CTM problem (which is what causes the wacky cursor jumping) is this patch, which was accepted into upstream on 19 Nov 2012; it is not yet in quantal-proposed, but I was able to rebuild xorg-server-1.13.0 (from 12.10) with this patch and the problem went away:
http://<email address hidden> /msg33742. html
There is another version of the patch floating around somewhere if you want to fix 12.04.