According to comment #20, this is a kernel bug now fixed as of 2.6.31.
Antti, if you can still reproduce the issue on karmic please feel free
to reopen the bug.
** Package changed: xserver-xorg-input-evdev (Ubuntu) => linux (Ubuntu)
** Changed in: linux (Ubuntu)
Status: Incomplete => Fix Released
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Agiler usb mouse not working on laptops
https://bugs.launchpad.net/bugs/274512
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