A touchpad pointing device dynamically adjusts cursor control gain characteristics based on the x-y coordinates at which the finger first touches the touchpad for a given cursor control task. In this manner, cursor control gain such as simple cursor tracking rate or cursor acceleration profile may be optimized for each control task without changing settings. The x-y coordinates are preferably grouped into easily identifiable zones on the touchpad surface. Accordingly, a wide range of control gain is available, including very high cursor track rates where long distance cursor excursions are desired, and very low cursor tracking for tasks requiring fine cursor positioning. As a further aspect of the invention, the touchpad also allows control of other operational features such as tapping, tapping sensitivity, and button functionality, thus providing a touchpad that is highly customizable.