I am having the same problem and also tried installing the driver in the link mentioned in the previous comment. I was able to get some good results using the xinput utility to modify the touchpad settings. Specifically with the "Synaptics Noise Cancellation" option. By default it was set to "12, 12". I am currently using a value of "28, 28". And the twitchy pointer behaves a lot better. It's not perfect but usable now. Information on the various driver options can be found here:
http://manpages.ubuntu.com/manpages/precise/man4/synaptics.4.html
I guess you could use the synclient utility as well to do this. FYI the command I used to modify my settings:
xinput set-prop 'AlpsPS/2 ALPS DualPoint TouchPad' 'Synaptics Noise Cancellation' 28 28