LOL "please help me out with unique solution " LOL
Here's one - disable it and grab a mouse LOL Just kidding...
God what did I get myself into lol I HATE REPAIRING LAPTOPS! lol they're too small and have gotten extremely small - hard if not impossible to work on..
Okay! Well - Touch pads and touch screens all react like this when they're about to fail... We had a touch monitor at work and did the exact same thing, but since the touch system wasn't a 'lay over' there was nothing we could do but replace it.
First step - have you updated the drivers for it and windows? If recently - maybe time to roll back the driver to see if that helps.
OH! Dell!!! You can login to the dell site and see about warranty and such, not sure how old that system is but its worth a shot. There's a 'code' that's probably on the bottom, you'll have to put that in, or maybe it will see it... Maybe you'll have to register... Been a while but I think their system might tell you that you may need certain updates - its a long shot but worth it...
Could be a thermal problem too - you have a cooler?
WAIT: HERE dell has put up a video for TouchPad problems... The first part - check your sensitivity and gesture options...
See how that goes.