I figured out my problems.
Problem 1: Coordinates of graphics tablet exactly matches the coordinates of the screen.
Solution: Follow Favux's instructions.
Problem 2: The cursor seems to be moving too fast.
Need to de accelerate the input device (The wacom device stylus)
First find the Constant Deceleration
Looking down the list you should see "Device Accel Constant Deceleration (256): 1.000000" as a default
xinput list-props "device name"
I wanted half the speed I was getting so I put 2 as the constant deceleration by:
This worked perfectly.
xinput set-prop "device name" --type=float "Device Accel Constant Deceleration" 2.000000
I hope others will find this useful.