Be sure that Xorg has been upgraded to 7.4+.
Install Xephyr from the repositories.
Open a terminal.
Connect a second device to a free serial input- USB, Firewire,PS3, etc.
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xinput list
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xinput create-master New
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xinput list
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xinput reattach <number of device> <number of second master>
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Xephyr -ac -screen 640x480 -br -reset -terminate 2> /dev/null :1 &
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Xephyr :1 & export DISPLAY=:1; xterm
You'll have to do some playing around, but you can run a session within the new window with its own pointer.
There is also a keyboard interface with the new pointer if you wish to attach one.
Practical uses would be helping someone you know with Linux or teaching.
Applications also stay limited to the new work area. Very helpful if you need to run a lot of small programs but you want them out of the way.
Enjoy.
Edit: I was not aware of the previous MPX tutorial. This can be merged /added to the older tutorial if the moderators wish.