So in the copious amounts of spare time I don't really have these days I recently got the 3.0 kernel working on my Sony Vaio system. In the wonderful world that is Linux kernel regressions the side scrolling didn't work on the Vaio Alps touch pad with the newer kernel. Thankfully after a good deal of digging I found my solution on the Linux Answer machine.
To get your side scrolling working again run:
sudo modprobe -r psmouse
sudo modprobe psmouse proto=imps
Note you will need to run these commands every time you start your computer (unless you add them to somewhere clever such as your /etc/rc.local file).