I have exactly the same issue, that was manifested after Ubuntu 7.10 to 8.04 
upgrade. The backtrace on my xorg.conf is identical to the one posted by con.
I have opened two weeks ago a post in ubuntu forums ( 
http://ubuntuforums.org/showthread.php?t=772550 )

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Xorg module VNC cores on keyboard input
https://bugs.launchpad.net/bugs/180619
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