I think this bug is now confirmed resolved with the Ubuntu 10.04.1 CD
image.

I loaded a workstation on our Adder AV8OSDE KVM. The box has a PNY
nVidia 6200 board in it.

First I installed from the 10.04.1 CD, then applied available updates and 
rebooted.
Next installed the latest binary nVidia drivers, rebooted.
Mouse working beautifully through the KVM box.

-- 
Mouse dies for entire KVM switch when 10.04 / Lucid machine connected to the 
switch boots
https://bugs.launchpad.net/bugs/586968
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