Same problem (keytouch not installed):

Most of the time my system hangs on logout.
With patience and lots of efforts I can most times switch to tty1 (certainly 
not direct) and press Ctrl-alt-del to restart.
Alt-backspace does nothing.

My system:
Ubuntu 8.04
the nvidia driver on a geforce4 MX 440
system AMD Athlon XP (nforce motherbord (Epox)) 2500+

My laptop (Toshiba Satelite A110-225 with a intel 810? card/driver?)
with about the same software, does not hang but "doubts" sometimes more
then a minute before really shutdown of logout (even when nothing has
been done). Wonder if this is related.

No problems with gnome GDM on 8.04 what I used before

-- 
[hardy] logout ends in blank screen
https://bugs.launchpad.net/bugs/181343
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