If something is selected (even accidentally) with the Sentelic touchpad it will not two finger scroll. Try this - select some text on this web page so that it is highlighted. Now try to two finger scroll. You'll find you cannot. Tap the touchpad once to undo the text selection - then you'll be able to two finger scroll.
Adjusting settings in the "Wheel" and "Pointer Options" tabs of "Mouse Properties" can smooth out scrolling. See
http://rog.asus.com/forum/showthread.php?5524-More-Accurate-2-Finger-Vertical-Scrolling-with-Touchpa... for details.
If you still experience problems, you may need to uninstall the Sentelic touchpad driver, reboot, then upgrade or reinstall the driver. If this fails, you may have a hardware problem with your touchpad.
G74SX-A1 - stock hardware - BIOS 202 - 2nd Monitor VISIO VF551XVT