Thanks for reporting this issue. I will investigate.
FYI, the Cypress PS/2 Trackpad driver is queued up for inclusion in mainline Linux 3.9, but my expectation is that that version will exhibit the same problem as you're seeing in the Ubuntu kernels. (So further testing of mainline kernels isn't necessary at this time).
Thanks for reporting this issue. I will investigate.
FYI, the Cypress PS/2 Trackpad driver is queued up for inclusion in mainline Linux 3.9, but my expectation is that that version will exhibit the same problem as you're seeing in the Ubuntu kernels. (So further testing of mainline kernels isn't necessary at this time).