Update:

Adding a Display subsection to the Screen section of my xorg.conf, specifying a 
Virtual size 
equal to the size of the external problem has solved the issue for me.
Section "Screen"
        Identifier      "Default Screen"
        Monitor         "Configured Monitor"
        Device          "Configured Video Device"
        SubSection "Display"
            Virtual 1280 1024
        EndSubSection
EndSection

-- 
xorg uses laptop video BIOS 'Panel Size' for external monitors, so apps end up 
confined to small space in top left of screen
https://bugs.launchpad.net/bugs/200805
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