I'm also experiencing this problem with an Asus A8M notebook, with Edgy
& linux image 2.6.17-11-generic.

I have upgraded to the latest BIOS available (v215) and am still
experiencing the problem: "USB HC takeover failed!"

However, I have something else to add...  I can get my USB mouse to work
100% of the time, by wiggling it at the right time during the boot
process (it sounds weird, I know).

If, I start moving my Logitech USB mouse after the graphical boot
progress bar is about 10% done, but before it is 50% done and keep
moving it until the graphical logon screen appears, then the mouse works
fine and is recognised (it also shows up correctly in dmesg).

I would still appreciate it if there is a fix available of course :)

Let me know if there is something I can do to collect more
information...

-- 
USB mouse only working fine when plugged after booting
https://launchpad.net/bugs/63651

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