Touchpad Sensitivity and xorg.conf

[Husse]

You did not tell us which version you installed but I guess Felicia
xorg.conf is no longer used for I/O configuration - it is to disappear in the long run
Create a file (on the Desktop) called touch.fdi with the following content

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<?xml version="1.0" encoding="ISO-8859-1"?>
<deviceinfo version="0.2">
  <device>
    <match key="info.capabilities" contains="input.touchpad">
        <merge key="input.x11_driver" type="string">synaptics</merge>
        <merge key="input.x11_options.SendCoreEvents" type="string">true</merge>
       <merge key="input.x11_options.Protocol" type="string">auto-dev</merge>
       <merge key="input.x11_options.HorizScrollDelta" type="integer">0</merge>
       <merge key="input.x11_options.SHMConfig" type="integer">0</merge>
    </match>
  </device>
</deviceinfo>

The 'Option “Device” “/dev/psaux”' is not needed as far as I understand
You can clearly see the similarity with the Section “InputDevice” you posted
Once the file is done it has to be moved to the right location
Open a terminal on the Desktop (if you created the file on the desktop) and

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suod mv touch.fdi  /etc/hal/fdi/policy/touch.fdi 

It's enough to unplug and plug back in but you can't do that so you have to restart X
Close and save any open application - then Ctrl+Alt+backspace
If this is the right options then it will be OK after that