The solution for me, using xfce4, was to logout and into gnome-shell.
Then I could change the setting...  Using gconf-editor didn't work, the
option was checked when I looked at it in gnome's control center under
mouse.  When I loged back into xfce4, all was/is good.  xev reports ctl
as it should.

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https://bugs.launchpad.net/bugs/9441

Title:
  the locate pointer option breaks other keybindings

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