This seems to be a KDE problem, also happening for me on Gentoo with a
Logitech MX3000 setup.
I'm going to go see if it's in the KDE bug tracker.
** Also affects: xserver-xorg-input-keyboard (Gentoo Linux)
Importance: Undecided
Status: New
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arrow keys don't work in kde 4.1.3
https://bugs.launchpad.net/bugs/298062
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