Comment 1 for bug 898853

Unity doesn't intercept any multitouch (MT) gestures, instead, uTouch is used for MT gesture recognition. TouchEgg seems to use UTouch well, and it works in my case.

Even Evince and Eye of GNOME have built-in uTouch pan-and-zoom gesture support in Oneiric out of the box, and it works for me.

The issue seems to be with your touchpad driver. Which touch pad do you have? Synaptics touchpad multitouch support is crappy at the moment in Oneiric; only up to 3 fingers are supported max, and there's no support for rotate gestures.

As you said, only up to 2 finger MT is recognized. That means that uTouch is falling back to its MT emulation mode because the driver doesn't support multitouch.

Either way, not an issue with Unity, but an issue with your hardware drivers or uTouch. Adding utouch-grail task, though it might not be the cause for this. But the guys there will know what the issue is, and if the need be, they'll mark this bug the appropriate package.

Also, please post your hardware description, until then this bug is incomplete