I can confirm that the usage of a external (PCI-E) graphic card circumvents the 
bug.
That is only the viable solution I have come up with, as kernel upgrade to 3.4 
or higher causes some inconsistencies between various programs, and a few bugs 
with others in Ubuntu precise 12.04.

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https://bugs.launchpad.net/bugs/999910

Title:
  [IVB]12.04 64 bit System freezes (mouse, keyboard)

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