I have the E521, and have had nothing but issues with the keyboard and
mouse, even on the 1.1.4 BIOS update.  The solution that I have found to
fix the problem is to append the following as a kernel option:

acpi=noirq

This disables IRQ redirects, so if you have a lot of devices, you could
have IRQ conflicts.  However, I've been typing solid without any
freezing.

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Mouse pointer freezes in Dell Dimension E521 / nForce 430
https://launchpad.net/bugs/67734

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