I have this bug too. I can confirm that unselecting "Show position of
pointer when the Control key is pressed" fixes the bug. Note that Ctrl-
Alt-L (Lock screen), Ctrl-Alt-S (Suspend), and Ctrl-Alt-H (Home folder)
break, but Ctrl-Alt-D (Show desktop) and Ctrl-Alt-T (Open terminal) work
fine. (Various Ctrl-Alt-specials and Shift-Ctrl-Alt-keys also work.)

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[Hardy] Some keyboard shortcuts do not work
https://bugs.launchpad.net/bugs/217685
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