I have a very similar problem.

I was running karmic on 2.6.31 almost fine (evdev was as usual completely not 
working so I used kbd)
yesterday it was working and now the xserver doesn't start with:
(EE) config/hal: NewInputDeviceRequest failed (8)

it's xorg-server 2:1.6.4-2ubuntu4

I tried xorg-edgers ppa, still not working, I tried evdev back and
forth, no luck either

-- 
Touchpad and mouse buttons not working after upgrade from Ubuntu 9.04 to 9.10
https://bugs.launchpad.net/bugs/442441
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which is subscribed to xserver-xorg-input-synaptics in ubuntu.

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