I'm going to vote for gpm being an issue too.  I've given up on this
getting fixed properly soon, and went back to 8.04.  I don't have any
issues with input and the OSD for the screen brightness works fine.
Just to be clear, DOWNGRADING the distribution works, but not
downgrading the kernel, which I tried earlier.  To be sure, the cause is
some quirky hardware,  but it seems more logical for gpm to be able to
handle the unexpected behavior more gracefully, rather than patching the
kernel for random bits of hardware, that may or may not need a work
around.

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Losing keyboard and mouse control when changing screen brightness with fn + 
arrow under intrepid
https://bugs.launchpad.net/bugs/285323
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