Mojo, I can't tell you how much I appreciate you actually going to the trouble of compiling that to a tazpkg for me and letting me download it. That totally solved my problem. My mouse cursor no longer has any jitter to it. I did also have to edit my 40-evdev.conf file and comment out the touchpad catch all block. Without doing that there was still some touchpad jitter. I did that based on some random post I found on an ubuntu forum.
So here is a complete play by play of my issue, debugging process, and resolution. (I'm mostly doing this in the hopes that any of the keywords I type here may pop up in search results of other users trying to figure out the same problem.)
1) Ran slitaz 4.0 from the live cd on my Dell Inspiron 1520 laptop.
1) Noticed my mouse cursor would jitter or shake when I had my finger perfectly still on the touchpad.
3) Tried my salix live cd to see how my mouse cursor behaved under that distro. It worked perfectly fine.
4) Tried to find a difference between the two distros so I could pinpoint the cause of the problem.
5) First compared Xorg versions since I didn't really know where to start. They were the same at version 1.9.5.
6) Did some google searching to figure out what might control the touchpad in linux. Seemed like xf86-input-synaptics and evdev were a couple candidates to check.
7) Looked at slitaz's version of xf86-input-synaptics. It was 1.3.0. Checked salix's version of xf86-input-synaptics. It was 1.4.0.
8) Saw a forum posting somewhere mentioning that it is possible that the touchpad settings in the evdev.conf file (in this case /etc/X11/xorg.conf.d/40-evdev.conf) can conflict with the synaptics settings.
9) I edited 40-evdev.conf and commented out the entire section block that contained a line called "evdev touchpad catchall"
10) That didn't do anything for me so I asked for help on getting a 1.4.0 version of xorg-xf86-input-synaptics.
11) Mojo worked his mojo and made a tazpkg for me to download.
12 ) I installed the updated driver and restarted X by hitting "ctrl alt backspace". Then, when I was at the command prompt, I typed "slim" to get back to the desktop.
13) Instantly my mouse had no more jitter so I decided to uncomment the touchpad catch all block in the 40-evdev.conf file thinking it was no longer needed.
14) Restarted X again with "ctrl alt backspace" and typed "slim" to get back to the desktop. My mouse went back to being all shaky.
15) Went back to the 40-evdev.conf file and re-commented the touchpad catch all block.
16) Restarted X one more time and went back to the desktop. My cursor was back to being jitter free.
So bottom line, it looks like if you have a jittery / shaky mouse cursor in slitaz 4.0, (or any other linux distro) you may want to try upgrading to xorg-xf86-input-synaptics-1.4.0 or later AND edit your evdev.conf file (in slitaz's case it's named 40-evdev.conf) to comment out the touchpad catch all block.
Now, all I need to do is figure out how to compile linux source code files by myself in slitaz so good people like mojo don't have to do it for me (though it's very much appreciated).