I have had same issues on Dell Vostro 1520 with Intel Integrated GMA 4500MHD.
Adding the kernel options "i8042.reset i8042.nomux i8042.nopnp i8042.noloop" 
seems not to work for me. Tested with Kernel 2.6.28.11 and 2.6.28.14..
Now I installed Kernel 2.6.30.4 from 
http://kernel.ubuntu.com/~kernel-ppa/mainline.

This seems to solve all my problems. Keybord works. Graphic improved. No
system frees after login.

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Dell Laptop vostro 1310, Internal Keyboard and Touchpad not working anymore on 
9.04 jaunty
https://bugs.launchpad.net/bugs/334249
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