This is happening to me right now on another computer running Karmic Koala.
If I boot into Gnome (running Compiz) the keyboard input is not accepted.
The keyboard still works but will not put input into any input boxes.
If I run GNOME Failsafe the system works.
** Changed in: compiz (Ubuntu)
Status: Fix Released => Confirmed
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no keyboard input if compiz is running
https://bugs.launchpad.net/bugs/147648
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