I have the same problem on Dell Latitude D420 with i810 driver. Compiz
is being used and sometimes after suspend-to-ram the problem appears.
Usually then going again to suspend and back helps for me (at least if
tried many times, with some try mouse&keyboard starts to work again).
Problem seems to appear quite randomly. Really irritating bug.

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[Gutsy] desktop and keyboard freezes while mouse is moveable
https://bugs.launchpad.net/bugs/138094
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