I found the cursor moving problem is related to compiz. If I disable compiz, it works. The desktop panning was not related to xrandr. I found that halo crashes and defaults to 640x480, not 1280x960. So it was properly running in 1280x960, but with 640x480 screen (not 1280x960 in 1920x1200). Oh well, halo crashes while quitting and I've no intention to disable compiz.
