I'm also affected by this bug - Xubuntu 8.10 AMD64.  I can repro in
exactly the same scenarios as described by original reporter.  My
workaround is the same as GonzaloF (text terminal, kill tsclient PID).

Please let us know if there's any further testing / debug info any of us
can provide - this is a rather annoying issue and I'd love to see it
resolved.

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[intrepid] enter a computer name then hit enter, list stays on screen and 
steals input
https://bugs.launchpad.net/bugs/270374
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