I ran into the same problem, updating from natty. Because of this bug, I downgraded the system to natty again, but the problem persists (running 2.6.38-10-generic #46-Ubuntu SMP Tue Jun 28 15:07:17 UTC 2011 x86_64).
Downgrading was performed by creating the following file, followed by running apt-get dist-upgrade: $ cat /etc/apt/preferences.d/downgrade Package: * Pin: release a=natty Pin-Priority: 1001 Package: * Pin: release a=oneiric Pin-Priority: 10 -- You received this bug notification because you are a member of Ubuntu Bugs, which is subscribed to Ubuntu. https://bugs.launchpad.net/bugs/807306 Title: [oneiric] Keyboard & mouse not working in X To manage notifications about this bug go to: https://bugs.launchpad.net/ubuntu/+source/udev/+bug/807306/+subscriptions -- ubuntu-bugs mailing list ubuntu-bugs@lists.ubuntu.com https://lists.ubuntu.com/mailman/listinfo/ubuntu-bugs