I can confirm the bug in 7.10 on AMD64. The machine is a Compaq Presario V5000.
Attached here is the messages tail of one incident of control loss.
For me it seemed like disabling taps helped, but turns out it didn't, just a 
random coincidence. 

** Attachment added: "/var/log/messages TouchPad"
   http://launchpadlibrarian.net/11303819/touchpad.log

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Jumpy trackpad tracking
https://bugs.launchpad.net/bugs/32877
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