I just tried the above solution to get the touchpad on my NC10 working, I never bothered before as I prefer to plug in a mouse. As it happens, the four lines that were added were the ones that caused it not to work properly, without them it worked nicely!
You removed:
Option "LeftEdge" "120"
Option "RightEdge" "830"
Option "TopEdge" "120"
Option "BottomEdge" "650"
Correct?
Yes - when I left them in, the whole touchpad became a scrolling device but did not move the mouse pointer.