The only reason I suspect xfwm4 is because if I restart it, the touchpad will begin to respond again. I can tell the touchpad is still sending signals as it will move just slightly and it will misinterpret events but it is at least receiving them. I'm running Ubuntu 12.10 64bit on an ASUS laptop. I can't find any kind of log for xfwm4.
This bug would need to have precise information on your hardware in order to be acted upon. What type of trackpad is it? At the very least the output of lshw and lspci should be attached.
It is also a good idea to report the bug to Xubuntu as it could be caused by a hardware issue. Have you experienced any problem under GNOME/KDE/Enlightement/Awesome?
Honestly, I don't even remember what machine this issue was on. It obviously went away. thanks.
No problem, thanks for reporting in the first place.
This report can most likely be closed as invalid now.