Comment 187 for bug 1166442

Never mind, I had modprobed psmouse proto=imps, and fixed the issue by running the command:

sudo rmmod psmouse && sudo modprobe psmouse

My touchpad is now working with full functionality. I also found the following instructions to automate this command on boot and create scripts to run it on resume from suspend/hibernate:

To enable the Touchpad you'll need to do the following from terminal:

1. sudo nano /etc/rc.local
2. Add the following line before the exit command. (sudo bash -c 'echo 1 > /sys/devices/platform/i8042/serio4/reg_07')
3. press CTRL+O then press Enter.

this will enable the touch-pad on start-up but it might stop working when suspended and/or hibernated. a workaround for this is:

1. sudo nano /etc/pm/sleep.d/sr-enable

and copy the following to the file

#!/bin/bash

case "$1" in
    suspend)
        ;;
    resume)
       sudo bash -c 'echo 1 > /sys/devices/platform/i8042/serio4/reg_07'
        ;;
    *)
        ;;
esac

3. press CTRL+O then press Enter.

4. sudo nano /etc/pm/sleep.d/ht-enable

5. again copy this

#!/bin/bash

case "$1" in
    hibernate)
        # executed on suspend
        ;;
    thaw)
        sudo bash -c 'echo 1 > /sys/devices/platform/i8042/serio4/reg_07' # executed on resume
        ;;
    *)
        ;;
esac

6. press CTRL+O then press Enter.

7. then (sudo chmod +x /etc/pm/sleep.d/ht-enable && sudo chmod +x /etc/pm/sleep.d/sr-enable)

8. then issue the following command ( sudo update-initramfs -u -k all )

Courtesy of "Халид (halidrauf)" in comment #11 (https://bugs.launchpad.net/ubuntu/+source/linux/+bug/1379450)

Thank you George Moutsopoulos and Ulrik de Bie!