try adding
Section "InputDevice"
Identifier "Synaptics Touchpad"
Driver "synaptics"
Option "SendCoreEvents" "true"
Option "Device" "/dev/psaux"
Option "Protocol" "auto-dev"
Option "HorizEdgeScroll" "0"
EndSection
to your xorg.conf. That's what was used by default before.
--
[Hardy][Regression] Touchpad vertical scroll does not work
https://bugs.launchpad.net/bugs/173411
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