The issue was due to gnome-settings-daemon and has been fixed in hardy
now
** Changed in: gnome-settings-daemon (Ubuntu)
Sourcepackagename: gconf => gnome-settings-daemon
Importance: Undecided => Low
Assignee: (unassigned) => Ubuntu Desktop Bugs (desktop-bugs)
Status: New => Fix Released
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Keyboard repeat rate not synchronized with gconf value at login
https://bugs.launchpad.net/bugs/208404
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