Fixed it. There's a ubuntu specific patch which adds the following line
to the alps kernel driver alps.c:
{ { 0x73, 0x02, 0x64 }, 0xf8, 0xf8, 0 }, /* HP
Pavilion dm3 */
Commenting out this new device fixes the ALPs on the HP mini 311c ;-)
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Alps touchpad is recognized but neither gsynaptics nor mouse preferences work
https://bugs.launchpad.net/bugs/550625
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