This can be partially alleviated by manually configuring the touchpad
with synclient. E.g.:

synclient HorizTwoFingerScroll=1 VertTwoFingerScroll=1
EmulateTwoFingerMinZ=29 EmulateTwoFingerMinW=5

However, I don't know why this isn't built into gnome-settings-daemon,
or why it worked under Karmic but not under Lucid.

-- 
Lucid Unable To Simulate Two-Finger-Scrolling.
https://bugs.launchpad.net/bugs/584059
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