If anyone can't wait (like me), I've built an Xorg binary for Ubuntu Jaunty 
that restores this AllowDeactivateGrabs  functionality and also includes the 
patch provided in 
https://bugs.launchpad.net/ubuntu/+source/xorg-server/+bug/334626 that stops 
regular server crashing, especially when running vmware player.
Binary is at http://www.aaa.net.au/campbell/Xorg.tar.bz2 and is a drop-in 
replacement for /usr/bin/Xorg but do back up your original.  If installing 
you'll likely need to stop the gdm service, then restart it after you're done.

-- 
AllowDeactivateGrabs is broken
https://bugs.launchpad.net/bugs/338489
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which is subscribed to xorg-server in ubuntu.

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