First, check the TouchPad Control Panel to look for any settings that may be wrong. Then try to RESTORE to a time before the problem started.

If these don't help, the pad may be defective or the connector inside the laptop may be loose. The warranty is (should be serviced by Best Buy; contact them.

I have a similar problem with a recently purchased Dell 1545.  The cursor remains stuck in the middle of the screen and will not shift - have also tried mouse but this does not work either.  Both left and right buttons continue to function however. 

I also had a similar problem with an Inspiron 1764.  The work-around that worked for me was to uninstall the driver and then let Windows automatically re-install the driver.  That gets me by until the next time.  I just also noticed that a new driver has been released for the 1764 touchpad, so I'm going to try that also.,

First, check the TouchPad Control Panel to look for any settings that may be wrong. Then try to RESTORE to a time before the problem started. If these don't help, the pad may be defective or the connector inside the laptop may be loose. The warranty is (should be serviced by Best Buy; contact them.