Comment 11 for bug 936552

Update.. so now everything works fine with the synaptics driver, no boot to 3.2.1 or 3.2.6 required. I suspect this was an xorg problem all along.

If I remove xserver-xorg-input-synaptics then the trackpad stops working (and oddly enough, the keyboard becomes really hard to use if X is running.. very hard to describe, but keypresses are lost). In my experience, the synaptics driver is really bad at palm detection, so I am not really happy about having to use it, but at this point, its my only option.

Redirecting to xorg. Thanks everyone for the help thus far.