Managed to get mouse and keyboard back by adding this to the
/etc/X11/xorg.conf file:
Option "AllowEmptyInput" "0"
in Section "ServerFlags"
I expected this to fail x server and drop me to a prompt, but what
happened is mouse and keyboard now functional.
** Package changed: update-manager (Ubuntu) => hal (Ubuntu)
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Upgrade amd64 9.04 to 9.10 fail system unusable
https://bugs.launchpad.net/bugs/466749
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