Please test with Feisty, which as of today has version 1.1.5 of the driver.
** Changed in: xserver-xorg-input-evdev (Ubuntu)
Status: Confirmed => Needs Info
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[regression] Pointer events ignored if 'Buttons' events exist on the same
/dev/input device (Logitech MX 700 keyboard)
https://launchpad.net/bugs/39509
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