I just upgraded from 10.10 to 11.04 and I'm getting the same problem.
Unity loads and I can move the mouse but nothing responds to mouse
clicks or the keyboard. I can switch to the console with Alt+Ctrl+F2,
when I switch back with Alt+Ctrl+F7 I get a black screen with the mouse
cursor.

The Ubuntu Classic option does not work either. It loads and my
background loads but the Gnome panels never launch.

Using Ubuntu Classic (without effects) works fine.

My laptop has an Nvidia GeForce Go 7400 which supports 3D acceleration,
and the current Nvidia driver is in use.

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https://bugs.launchpad.net/bugs/760769

Title:
  Desktop stops responding to all keyboard and mouse clicks

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