You don't need to disable the touchpad, you only need to disable
"taps". There is an option to do it in 8.04, but I'm not at the linux
box now so I can't give you specifics. Suggest you start looking
under SYSTEM > PREFERENCES.

Yes, but it happens in KDE or GNOME equally, so it must be something else.
It happens in Windows which came with it, but not nearly as much. ASUS included
a tray utility with Windows and that seems to be the difference between what is
happening in there and in Linux.

It probably has to do with sensitivity control, but I am not sure where to look.
Could it be as simple as editing gconf?

For now the problem is dealt with, but it would be good to know for future
reference.