Comment 6 for bug 883319

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Bryce Harrington (bryce) wrote : Re: xrandr --scale 1.2x1.2 restricts area in which mouse moves

The patch on 40063 simply reverts the cursor constraint feature -- not what we want for fixing the issue.

Three other patches have been proposed:
http://patchwork.freedesktop.org/patch/6217/
http://patchwork.freedesktop.org/patch/6209/
http://patchwork.freedesktop.org/patch/6488/

However, these are for fixing panning rather than scaling. However these look like they're more on the right track of solving the underlying problem, perhaps something similar could be crafted to handle scaling better.