same problem, PS/2 keyboard and mouse stop working suddenly, mouse
pointer moves, if I move the cursor over something, it looks like it
starts flickering very fast as if it cycles through the rest of onscreen
buttons, power button for me does not work and only way to recover is
through hard resetting the system, no other system to ssh in

-- 
[jaunty] Mouse and keyboard stop responding
https://bugs.launchpad.net/bugs/320173
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which is subscribed to xserver-xorg-input-evdev in ubuntu.

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