The /etc/modprobe.d/options.conf change fixed mine as well. Such a simple 
thing. 
Thanks Wesley Wilson and NTolerance for finding that. :-)

Since the netbooks mentioned in this thread (eeepc 900a and 901) are
listed as "Tier 1"[1], is it possible to get this fix packaged somehow?

1. https://wiki.ubuntu.com/HardwareSupport/Machines/Netbooks

-- 
[Jaunty Beta] cursor jumps when using touchpad on Eee PC 900A
https://bugs.launchpad.net/bugs/355326
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