Though I'm not sure about the source (allegedly Nvidia), I have the same
problem described. I'm running Ubuntu 10.10 with Nvidia and Ubuntu hangs
when my USB devices like mouse, keyboard and speaker all suddenly stop
working, forcing me to hard reboot. The problem appears to be occurring
with increasing frequency over the past two or so weeks till now, where
I am rebooting a few minutes into each login!

This problem has been inherited through successive releases of Ubuntu
(since 10.04, I think), along with another problem where Ubuntu crawls
to a stop with no memory usage and heavy disk usage. I think these
problems should be marked as 'High' status.

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https://bugs.launchpad.net/bugs/577648

Title:
  All USB ports suddenly stop working

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