This is the same issue as bug# 3762 but the solution for 3762 does not apply to my version of xfce/ubuntu. I am looking for something like gsynaptics-mcs-plugin but I do not see this in the repository, I see that there has been changes in Ubuntu's repos to remove all things related to mcs. I am using Ubuntu 9.04 i386.
I did this on purpose when rewriting the code for xfce4-settings. The idea behind this is that the Xorg people are changing the drivers to support device properties, so I want to support this in the feature (for all kinds of pointer devices).
When the code was written this was not properly/fully working yet, so therefore it never was added to the code. Will look into this again the next time I focus on the pointer code in xfce4-settings.
Anything new wrt. this bug? I am trying to switch from GN*ME to XFCE, and this os one of the problems I have. Adding proper synclient call to the session startup fixes this, but it is not elegant.
Being worked on.
Finished in nick/pointers branch of xfce4-settings. After being tested it will be merged in master for 4.10.