Installed xubuntu 8.10 on my laptop over the weekend and it has the same
issue. Mouse movement alone doesn't keep the screen saver from
activating and once activated the screen saver won't turn off with mouse
movement either. Once the monitor shuts itself off then mouse movement
will bring it back.

xubuntu 8.10 fully patched - 2.6.27-11-generic
nvidia vid card using repo drivers version 177; compositing is enabled in 
xorg.conf, but not xubuntu
single laptop monitor

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screensaver won't release with mouse movement
https://bugs.launchpad.net/bugs/273142
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