the newly installed xubuntu on my laptop on has synaptics touchpad installed. I face a strange problem that being my cursor automatically shifts to a random position while typing. Ne idea what could be the reason
You probably can fix this by disabling the touchpad while typing.
You have two options.
This will include some additional gnome libs ;)
sudo apt-get install tpconfig
In tpconfig you will find options to enable/disable tap mouse clicks and to disable touchpad while typing.
In the XFCE options, add this command to autostart
syndaemon -t -k -i 2 -d
See man syndaemon for a full set of options.
This could be because part of your wrist/hand is over (but not touching) the touchpad. This happens on my laptop all the time. I usually disable it and use a mouse.
Check your laptop / netbook manual if there is a key combination to disable the touchpad.
Worked for me both in Windows XP and Xubuntu.