Comment 10 for bug 173721

Just a "me too" note to say I started experiencing the same problem after upgrading gnome-control-center to version 1:2.21.90-0ubuntu1 and installing gnome-settings-daemon. I am using a US keyboard layout and my "Use capslock as ctrl key" option doesn't have any effect after login. Changing it away and back again in GNOME's keyboard setting makes it work.

I didn't have this problem before this recent upgrade. The system is upgraded from gutsy pretty early (before alpha 1 release), and I keep a quite up-to-date system, at least an upgrade per week.