I installed Ubuntu 8.01 a few weeks ago. After installing VMWare Server,
I also experienced the above. I am running this on a Dell Precision M65
laptop (using the ATI drivers). The ONLY time I experience this issue is
when running VM, and shift, alt, ctrl all are disabled. In addition,
when I open a new application (such as FireFox) they immediately crash.
I have not experienced Ubuntu crashing.

The only fix I have found that works is a reboot, but I have not yet
tried setxkbmap or logout/in.

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Shift key (and caps lock) stop working when using VMWare
https://bugs.launchpad.net/bugs/195982
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