Unfortunately I'm having the same issue, and when you contact Asus for support, they are unable to resolve the issue, hence they become dismissive by trying to get you to claim warranty.
It's unfair that we have to modify our use for our devices and functions that we paid for, due to lack of support.
But if we must, I've found that completely uninstalling the software and letting windows' default drivers will get it working for basic functions (point, click, and tap).
Lastly, using a mouse will get you running, but defeats the purpose of Windows 8. By all means this is truly an awful way to experience Windows 8 or 8.1, but since Asus is lagging on this matter, it's another quick fix to get you going.
For some odd reason, an older driver/software of the Asus Smart Gesture works well with Windows 8.1.
Uninstall current driver/software, restart, Download the 2.2.0 Version, install, restart, and there you go - a fully working touchpad with gestures enabled without the bugs.
I had the same issue in Windows 7. Have fixed this by modifying TPProfile_Win7.xml configuration file. Unfortunately my rating is not enough to post the answer with detailed description. – nicolay.anykienko – 2016-08-24T22:11:09.790