Re: Cypress Touchpad driver XPS 15z Windows 8 (Workaround Solution)
Sel, as Ken says, this is a confusing situaion. I started with a fresh install of Win8 x64 pro as well,and right out of the box, the touchpad worked. I think it was using the default microsoft mouse driver, no gestures worked, but it functioned just fine. I would try uninstalling anything related to the touchpad (look for cypress, syntaptic, etc) and roll back the touchpad/mouse driver as far as you and see if that helps.
I wouldn't think that the hardware would fail from an operating system install.
Have you tried booting from a live Linux CD/USB stick such as Mint or Ubuntu? If the touchpad works with those, it rules out a hardware issue. If you still have issues in an alternate OS, I would say there's a hardware issue, which might be as simple as a loose connector, or actually need warranty work.
Good luck keep us posted and we'll try and help as we can.