Yep, this bug is now affecting me too. Weird because Ubuntu 10.04 was
working fine on this Dell Inspiron 2650 for some time before. So now I
used scalawag_'s suggestion at
http://ubuntuforums.org/showpost.php?p=9054571&postcount=7 to get to the
Ubuntu Desktop:

At the gdm screen:
Ctrl+alt+F2
login with username and password
sudo service gdm stop
startx

After I was booted into the GUI, I created a special user(I used
username: freeuser) via System>Administration>Users and Groups, set it
up with admin privileges, then enabled the "Don't ask for password on
login" setting. So then after I reboot, I click the user "freeuser" and
it logs in automatically (sometimes gdm restarts and I have to click it
a second time, but after that it works). Then after that, I had to(as
I've always had to do with this machine while the nvidia graphics are
installed) set "Appearance Preferences"(right-click the desktop, click
"Change Desktop Background", then "Visual Effects"), from Normal to
None.

Something else I notice is that my nvidia driver won't install properly.
I click System>Administration>Hardware Drivers and then try to activate
the driver(version 96) but it fails with "Sorry, installation of this
driver failed. Please have a look at the log file for details:
/var/log/jockey.log" (attached).

Seems unlikely that any typical new user could even make any of this
work. So in the case of this Dell Inspiron 2650 anyway, this problem is
a vote for buying Ubuntu preinstalled.

Thanks to everyone helping with this!
Shannon VanWagner -  humans-enabled.com

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Mouse and keyboard stop working after selecting user
https://bugs.launchpad.net/bugs/553200
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