I have the same issue as described and I feel that this bug in terms of 
Importance should move to high Importance.
This renders Ubuntu 8.10 in terms of Productivity to Null.

I have Dual Video Cards; Geforce 8500 - with the Restricted Nvidia Drivers 177 
Installed.
I have configured my 3 LG 23" LCD Monitors with Twin View / Xinerama

- Heavy user of Gnome-RDP since Terminal Server Client does not seem to have 
Clipboard Support
- In essence it seems that this bug will happen when RDP Sessions or VNC 
Sessions are opened for a long period of time.

I experience this problem approximately 2-3 Times a day, and sometimes
more. All keyboard functions still seem to function. Login off my
Session with CTR-ALT-DEL and using the keyboard arrow keys to log-off
then login back in will allow my mouse to have click functionalities
again.

When this bug comes to life, I am able to see my mouse cursor moving,
but cannot click on anything. All keyboard keys such as combinations of
ALT-Tab and etc... functions.

I have a Logitech Laser Mouse MX Something.

Re-Installed Intrepid as well, fresh Installation with all updates.
Ubuntu 8.10 / x_64

Hardware:

- Quad Core Intel Q6600
- 8GB of Memory
- 3x LG Monitors 23" 
- 2x Nvidia Geforce 8500 PCI Express Video Cards

-- 
X.org will intermittently stop responding to mouse clicks on Ibex with Xinerama
https://bugs.launchpad.net/bugs/296167
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