Well maybe a couple of ways to go. We could try changing it from a floating slave to a slave pointer with whatever man xinput tells us to use. Maybe it's detached for some reason (made a float) and we need to reattach it. I can't tell if TOUCHSCREEN is the "device name" or not. But if it is what does:
xinput list-props "TOUCHSCREEN"
It looks like I was trying to compile fpit and see if that is the problem before I got distracted. I assume you did sudo apt-get install xserver-xorg-input-fpit? From my notes I managed to compile in Lucid and Maverick using the fpit git repository. I'll have to check the notes to see if there were any problems, but I don't see any errors. Also I'll have to boot into Natty and try it there and see what happens.
I thought it was. Remind me the proprietary Nvidia driver doesn't work? And where did you get those video sections from in your xorg.conf?
another interesting point is that xrandr is still not working, is it compatible with noveau?
And by the way the last section is wrong if it is really that way. It should be:
Option "Composite" "Enable"
Edit: If TOUCHSCREEN is the "device name" try:
To detach it you should have had to run:
xinput reattach "TOUCHSCREEN" "Virtual core pointer"
Edit 2: Never mind. Just spent some hopefully fruitful time and we may be able to get the stupid thing to work. I need a break and then I'll write it up.
xinput float "TOUCHSCREEN"