Ubuntu Bug #563530 Fix is to create ~/.config/lxde directory.
Looks like from the scheme of things that should be ~/.config/lxinput, but that doesn't work. Looks like lxinput package needs a patch. One is already submitted on the Ubuntu bug page, but I'm not sure if the patch is creating the lxde or lxinput directory... Cheers! -- Member -- Palouse Hills Skating Club Pullman, WA; USA 509.332.7311