Surprisingly, this issue got fixed automatically while I was trying to
troubleshoot it. The following steps seems to have fixed it for me.

(1) Removed ~/.gconf/desktop/%gconf.xml using tty1 (Ctrl + Alt + F1).

     susam@nifty:~/.gconf/desktop$ mv %gconf.xml %gconf.xml-backup

(2) Logged into GNOME desktop as 'susam'. After logging in, keyboard input
worked.

(3) Logged out of GNOME desktop and returned to tty1 (Ctrl + Alt + F1).

(4) Restored the original %gconf.xml

     susam@nifty:~/.gconf/desktop$ mv %gconf.xml-backup %gconf.xml

(5) Logged into GNOME desktop as 'susam'. Surprise! Keyboard input worked
fine again!

In other words, I could not really establish what caused the problem and
what fixed it. Anyone has a clue?

Regards,
Susam Pal

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