1) Enabled SHMConfig by following these instructions, which is to basically create the file /etc/hal/fdi/policy/shmconfig.fdi and add this to it:
<match key="input.x11_driver" string="synaptics">
<merge key="input.x11_options.SHMConfig" type="string">True</merge>
2) Add the following command "syndaemon -i 1 -d -t -S" to System->Preferences->Startup Applications
It worked like a charm and now I don't have to worry about the cursor jumping around like crazy when I'm typing.