I am using Fedora 19. I am having minor issues with the mouse pointer and scrolling. When i use the "two-finger touch" scrolling on my laptop mousepad, the page jerks and moves randomly. I can still scroll with the arrow keys but i wuld prefer the mousepad.

Is this a software or hardware problem? (cant be hardware i think because it worked fine with Windows before)

How can i correct this?

Are you using the GNOME, MATE, KDE, or some other desktop management system? Those first three have a "System Settings" application available, and, in the "Mouse" or "Input Devices" section you should find a "Keypad Configuration" tab or setting. Try playing with different settings to get what you want. (I'm on my desktop system, with no keypad, so that option is not shown.)

As an example of the flexibility, on my laptop I've configured it so the right side of the pad is a scroll bar I can use with one finger, and a tap in the upper left is a middle-button press. That's because I don't like multiple finger actions since my finger lengths differ so much that they are not easy for me.

Anyhow, look for the input devices configuration settings.

I am running GNOME desktop i guess. I do not know. It is the default one that came with Fedora 19. In "Settings>Mouse & Touchpad" there is only GUI slide option for mouse speed and on/off option for "tap to click" , "two finger scroll" ,"content stick to fingers" and "turn off while typing".
How was all the configuration u mentioned done?

Ah, sorry: I use the KDE desktop, and the "Touchpad" settings are, apparently, a little more complete. IIRC, those settings are still "active" when I use the MATE desktop. (I only look at the GNOME desktop once or twice when a new version is released to see if they've figured out how to get a desktop that users can reconfigure to work the way they want instead of the way the developers think they should want. With KDE, I can set my desktop the way I like it: no desktop "icons" nor "menu bars" displayed; only windows I've opened. [I do have a "menu bar," but its only displayed when I move the mouse over where its hidden.] The reason I want an uncluttered/window-only desktop is because I lack, almost completely, any visual memory or visualization ability, so "icons" are seldom useful, and often incomprehensible, for me.)

In any case, unless your drive is quite full, you could install the KDE desktop as an alternative to GNOME, reboot and select it from the "Menu->Desktop" item in the menu section of the login screen, and use the KDE tool (kcm_touchpad, accessed from "System Settings->Input Devices") to change the touchpad settings. Then log out, re-select GNOME from the menu, and see if the setting "hold" for you. (Or, of course, just use KDE - many people prefer it to the GNOME desktop.)