I too confirm this problem on Hardy 8.04 with all updates as of today.

I am using vmware server 1 (running Windows XP in it). Within vmware,
everything is fine.

My guess is that this bug is somehow vmware related, but it also has to
do with Ubuntu 8.04 or its components (X, Gnome, Compiz?). I used vmware
ratherly intensive in all previous Ubuntu versions and never had similar
problems. Even though vmware certainly is no supported part of Ubuntu, I
consider this bug -- whereever it is -- serious.

-- 
[hardy] keyboard modifiers randomly forgotten
https://bugs.launchpad.net/bugs/190934
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