Upgrading from Snow Leopard to Mountain Lion is a big leap. Many third party apps and system modifications that were written for Snow Leopard will not work, or will burden your Mac resulting in the problems you describe.
What you are experiencing is not normal. You need to identify every third party system modification you installed and either remove or update each one to a Mountain Lion - compatible version in accordance with their respective developer's instructions. It's also possible that your hard disk is failing, so be sure you have adequate backups.
To help determine what may be the culprit, download and run EtreCheck according to the following instructions:
Apple Support Communities contributor etresoft wrote a very useful app to quickly gather certain system information that may help point to a cause of this problem. Go to his website, download and run EtreCheck:
Etrecheck will be in your Downloads folder. Open it from there. You may see the following dialog box:
Click Open - etresoft contributes to this forum frequently and can be considered a trustworthy developer.
It will take a moment to run as it collects its data.
Copy and paste its output in a reply.
Do not be concerned about anything that says "Problem" or "failed".
EtreCheck was designed to remove any personal information (such as your computer's name and serial numbers) but if you see anything that looks like an email address or any other personal information that should not be divulged to others, please delete or obscure that information when you post the reply.
When you are finished with EtreCheck, quit the program. It occupies very little space, and you can keep it or drag it to the Trash as you wish.
Though Mountain Lion will run with a minimum 2 GB memory, it really needs at least 4 GB to run acceptably well, and more is always better. Your MacBook can address as much as 8 GB, a very comfortable amount for Mountain Lion. Purchase memory from OWC / MacSales or Crucial.
Insufficient memory is not likely to be the sole cause of the problems you describe though.
I have read somewhere that its from dirty hands.
What? No. If your trackpad is not working properly, your battery may be so old that it's failing in a manner that causes it to swell and exert pressure on the trackpad from beneath. If you suspect that is happening, you need to replace the battery immediately before any permanent damage occurs. Draining as rapidly as you describe may be a clue.
This is what results were.
MacBook (13-inch, Late 2009)
MacBook - model: MacBook6,1
1 2.26 GHz Intel Core 2 Duo CPU: 2 cores
2 GB RAM
NVIDIA GeForce 9400M - VRAM: 256 MB
OS X 10.8.4 (12E55) - Uptime: 0 days 1:42:59
TOSHIBA MK2555GSXF disk0 : (250.06 GB)
disk0s1 (disk0s1) <not mounted>: 209.7 MB
Macintosh HD (disk0s2) /: 249.2 GB (205.91 GB free)
Recovery HD (disk0s3) <not mounted>: 650 MB
Apple Inc. Built-in iSight
Apple Inc. Apple Internal Keyboard / Trackpad
Apple Inc. BRCM2070 Hub
Apple Inc. Bluetooth USB Host Controller
Problem System Launch Daemons:
Problem System Launch Agents:
[not loaded] com.adobe.AAM.Updater-1.0.plist
User Launch Agents:
User Login Items:
3rd Party Preference Panes:
Google Earth Web Plug-in.plugin
User Internet Plug-ins:
Top Processes by CPU:
Top Processes by Memory:
446 MB WebProcess
135 MB Safari
47 MB WindowServer
39 MB mds
31 MB rapportd
31 MB Dock
25 MB SystemUIServer
23 MB loginwindow
23 MB Finder
18 MB PluginProcess
Virtual Memory Statistics
38 MB Free RAM
758 MB Active RAM
719 MB Inactive RAM
275 MB Wired RAM
286 MB Page-ins
0 B Page-outs
You're running Trusteer Rapport, and though I have to admit that I haven't tested it, it sounds like unnecessary software to me. You don't need that kind of thing normally to keep your Mac secure. Keeping your system up-to-date and taking a few precautions is enough to keep you safe. (See my Mac Malware Guide.)
Similarly, you've got iAntivirus, which is really, really bad anti-virus software. Not only are its definitions not very good at catching Mac malware in the first place, but it has no capability to update its definitions outside of infrequent application updates. Delete it. (However, this is not likely to be causing your problems.)
At the time you ran etrecheck, there's no indication that you have memory issues. However, it looks like it may have been run fairly soon after startup, so that's not really a fair indicator. Run it again after your machine has been up and running for a while, and compare the page-ins and page-outs (the last two numbers). As a general rule of thumb, the closer page-outs is to the value of page-ins, the worse you need more RAM. (If page-outs is actually bigger, you need more RAM very, very badly!) 2 GB of RAM is not ideal for Mountain Lion, so this could be a part of your problem.
For more performance-related troubleshooting, see my Mac Performance Guide.
Finally, regarding the trackpad, there are many possible explanations. Dirt is one, water damage another (if you have cleaned it with too wet a cloth, for example). I've seen reports that third-party (ie, not made by Apple) power cords can cause such problems. But, given the fact that you say you're also having battery issues, my suspicion would be that the battery may be swelling, putting pressure on the underside of the trackpad. You should get that checked out ASAP. Make an appointment at the Genius Bar at your nearest Apple Store and take the machine for them to examine. If you don't have an Apple Store nearby, call Apple's phone support.
Thanks. The majority of reports on this site regarding poor Mac performance are due to poorly implemented third-party system modifications, and most of them are directly attributable to ill-conceived "anti-virus" software. There are many complaints regarding Trusteer Rapport in particular, and as Mr. Reed notes iAntivirus by Norton is utterly useless. A Mac with only 2 GB RAM will quickly be hobbled running such junk.
Get rid of them and let your Mac work the way it's designed to work. More memory is likely to help, and is the least expensive way to prolong the economic life of any Mac. Buy from OWC or Crucial.
Regarding the trackpad read: Portables and Magic Trackpad: Jumpy or erratic trackpad operation