Sorry that others are having this problem but glad to learn that I am not alone. Along with this issue I also started having problems with my MBP unexpectedly powering off when on battery. The trackpad and power problem seemed to have occurred on our about the same time frame.
I used to love my MBP but lately it has become a bloody nightmare.
Same problem here. Randomly it seems like the Macbook Pro thinks that I am holding down the button so drags and selects text, or does not press buttons or shortcuts properly as it thinks I am trying to drag/move them.
The thing that fixes it for me is right clicking (with the 2 finger gesture). I thought it was just a bug affecting people with old Macbook pros (I have the 4.1, Early 2008 model).
Very annoying bug, hope it is fixed soon as, apart from this quirk, Inertial scrolling is really good.
Thank you guys for your workaround, however I would like to highlight to Apple that the problem is persistent and we expect they'll handle it and fix it.
It's very annoying to be blocked in "Select mode". For instance, when I lent my computer to friends of mine I don't want to be obliged to print it out a workaround manual!! And in the meantime it's definitely NOT a good ad for Apple products.
My laptop is a white macbook bought in 2010 with Snow Leopard OS.
Seems to have bricked mine. It was a fresh OSX install with an update straight to 10.6.5. I had this the last time I installed the trackpad software and a reboot kicked it back into action. This time, no such luck. It just sits there on the boot screen with the Apple logo and spinning cog! Sounds like another rebuild is required, which ***** as it took 4.5 hours to restore my Time Machine backup. Grrr!