I don't think this is a grace issue only. This is an X server issue. 
Unfortunaly there hasn't been a new release from Ubuntu yet.
I have put a few notes on my blog on how I fixed this. Gladly rebuilding the X 
server from source is pretty straight forward these days in ubuntu....
If you are interested in the fix, please see: 
http://twboutnothing.blogspot.com/2010/06/details-for-ubuntu-1004-xorg-server-176.html

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Mouse cursor trapped with right-click in menu, lose input control
https://bugs.launchpad.net/bugs/552681
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