Looks like you're hitting 
https://bugs.freedesktop.org/show_bug.cgi?id=44655

which is fixed in xf86-input-evdev git by
http://cgit.freedesktop.org/xorg/driver/xf86-input-evdev/commit/?id=5c5b2c8db851df7921cedd888222a6630a007fd8

** Bug watch added: freedesktop.org Bugzilla #44655
   https://bugs.freedesktop.org/show_bug.cgi?id=44655

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You received this bug notification because you are a member of Ubuntu-X,
which is subscribed to xorg-server in Ubuntu.
https://bugs.launchpad.net/bugs/921236

Title:
  [12.04 Xorg, xserver 1.11.3] Dual monitor, after entering password,
  mouse pointer stuck on LHS of screen, no desktop.

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