I too am experiencing this bug. I can type my password in blindly for
now, and Ctrl-Alt-F1 followed by Ctrl-Alt-F7 fixes it temporarily.

ATI Mobility Radeon HD 3450 on a Dell Studio 15.

Bug is new in Karmic. intrepid and Jaunty did not have this bug.

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gnome-screensaver freezes and does not bring up the password prompt if 
mouse/keyboard activity
https://bugs.launchpad.net/bugs/213099
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