After many, many hours of googling and trial and error, I found a solution that works.
1. Open up a terminal
2. Type the following codes in
Code:
synclient VertTwoFingerScroll=1
synclient HorizTwoFingerScroll=1
synclient EmulateTwoFingerMinW=5
synclient EmulateTwoFingerMinZ=48
Please note that I am using a HP-DM41050CA with a PS/2 Synaptics Touchpad. Two finger scrolling works great, horizontal and vertical. Also, unlike Windows I can go diagonally and freely in any direction, which i think is absolutely amazing.
NOTE: This code will stop working after reboot, so open gedit and paste the code above into it. Then save the file with any name as a (.run) file in your home directory. Assuming you are using 10.04 Ubuntu, go to System>Preferences>Startup Applications and add that (.run) file to the list.
Hope this helps! It's the only thing that works for me.
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