I see this too. Intrepid guests seem to be ok, but win2k and Hardy
guests don't ungrab. Need to 'Ctrl+Alt+F2' to console, then do 'virsh
shutdown <vm name>'. After the machine shuts down, the cursor is
released.

** Changed in: virt-manager (Ubuntu)
   Importance: Undecided => High
       Status: New => Confirmed

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impossible to ungrab mouse/keyboard
https://bugs.launchpad.net/bugs/287754
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