Thanks for the report, i cannot reproduce it here, does it works fine
with another new user created on your system? do you get any errors on
syslog, dmesg or ~/.xsession-errors file? that might be a problem with
the mouse itself or the kernel module being used there rather than a bug
in the gnome-terminal.
** Changed in: gnome-terminal (Ubuntu)
Importance: Undecided => Low
** Changed in: gnome-terminal (Ubuntu)
Status: New => Incomplete
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mouse stops working correctly
https://bugs.launchpad.net/bugs/613351
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