this might need to be filed against pbbuttonsd not xorg have you tried without X running at the console and get the same results ?
** Changed in: xorg-server (Ubuntu)
Status: Unconfirmed => Needs Info
** Changed in: pbbuttonsd (Ubuntu)
Status: Unconfirmed => Needs Info
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Terrible keyboard performance on PPC
https://launchpad.net/bugs/54781
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