Comment 21 for bug 905636

I believe we can consider this bug fixed now. Onboard trunk by default listens to XInput slave devices for pointer input, which gets around a number of pointer grab issues, including this bug.

The changes were quite invasive, but we've been testing for a month now, and there are no more known regressions (e.g. worst case bug #1095508). Testing was done on the Nexus 7 and various PC hardware.

In case anything goes very wrong*, the old way of receiving pointer events is still available:
set Preferences->Keyboard->Advanced->"Input event source" to "GTK", no restart required.
Doing so returns this bug, though. Please open a bug report if you have to resort to this.

* For example: clicks/taps/dragging/hover click do nothing, or more or less subtly do the wrong thing.