I updated to latest kernel in proposed repository, and now I have this problem too. The touchpad in my laptop worked after I loaded the usbmouse module into the kernel.

$ apt-cache policy linux-image-generic
linux-image-generic:
  Installed: 2.6.27.7.11
  Candidate: 2.6.27.7.11
  Version table:
 *** 2.6.27.7.11 0
        500 http://fr.archive.ubuntu.com intrepid/main Packages
        100 /var/lib/dpkg/status

I am using Kubuntu 8.10 amd64

$ dmesg | tail
[ 3178.640052] usb 1-2: device descriptor read/64, error -62
[ 3178.928133] usb 1-2: device descriptor read/64, error -62
[ 3179.196289] usb 1-2: new low speed USB device using ohci_hcd and address 20
[ 3179.384065] usb 1-2: device descriptor read/64, error -62
[ 3179.672064] usb 1-2: device descriptor read/64, error -62
[ 3179.952074] usb 1-2: new low speed USB device using ohci_hcd and address 21
[ 3180.360059] usb 1-2: device not accepting address 21, error -62
[ 3180.536054] usb 1-2: new low speed USB device using ohci_hcd and address 22
[ 3180.944112] usb 1-2: device not accepting address 22, error -62
[ 3180.946161] hub 1-0:1.0: unable to enumerate USB device on port 2

$ lspci                                                                                                      
00:00.0 RAM memory: nVidia Corporation MCP67 Memory Controller (rev a2)                                                        
00:01.0 ISA bridge: nVidia Corporation MCP67 ISA Bridge (rev a2)                                                               
00:01.1 SMBus: nVidia Corporation MCP67 SMBus (rev a2)                                                                         
00:01.2 RAM memory: nVidia Corporation MCP67 Memory Controller (rev a2)
00:01.3 Co-processor: nVidia Corporation MCP67 Co-processor (rev a2)
00:02.0 USB Controller: nVidia Corporation MCP67 OHCI USB 1.1 Controller (rev a2)
00:02.1 USB Controller: nVidia Corporation MCP67 EHCI USB 2.0 Controller (rev a2)
00:04.0 USB Controller: nVidia Corporation MCP67 OHCI USB 1.1 Controller (rev a2)
00:04.1 USB Controller: nVidia Corporation MCP67 EHCI USB 2.0 Controller (rev a2)
00:06.0 IDE interface: nVidia Corporation MCP67 IDE Controller (rev a1)
00:07.0 Audio device: nVidia Corporation MCP67 High Definition Audio (rev a1)
00:08.0 PCI bridge: nVidia Corporation MCP67 PCI Bridge (rev a2)
00:09.0 IDE interface: nVidia Corporation MCP67 AHCI Controller (rev a2)
00:0a.0 Ethernet controller: nVidia Corporation MCP67 Ethernet (rev a2)
00:0c.0 PCI bridge: nVidia Corporation MCP67 PCI Express Bridge (rev a2)
00:0d.0 PCI bridge: nVidia Corporation MCP67 PCI Express Bridge (rev a2)
00:12.0 VGA compatible controller: nVidia Corporation GeForce 7150M (rev a2)
00:18.0 Host bridge: Advanced Micro Devices [AMD] K8 [Athlon64/Opteron] HyperTransport Technology Configuration
00:18.1 Host bridge: Advanced Micro Devices [AMD] K8 [Athlon64/Opteron] Address Map
00:18.2 Host bridge: Advanced Micro Devices [AMD] K8 [Athlon64/Opteron] DRAM Controller
00:18.3 Host bridge: Advanced Micro Devices [AMD] K8 [Athlon64/Opteron] Miscellaneous Control
01:09.0 FireWire (IEEE 1394): Ricoh Co Ltd R5C832 IEEE 1394 Controller (rev 05)
01:09.1 SD Host controller: Ricoh Co Ltd R5C822 SD/SDIO/MMC/MS/MSPro Host Adapter (rev 22)
01:09.2 System peripheral: Ricoh Co Ltd R5C843 MMC Host Controller (rev 12)
01:09.3 System peripheral: Ricoh Co Ltd R5C592 Memory Stick Bus Host Adapter (rev 12)
01:09.4 System peripheral: Ricoh Co Ltd xD-Picture Card Controller (rev ff)
08:00.0 Network controller: Broadcom Corporation BCM4312 802.11b/g (rev 01)

$ lsusb
Bus 003 Device 001: ID 1d6b:0001 Linux Foundation 1.1 root hub
Bus 001 Device 001: ID 1d6b:0001 Linux Foundation 1.1 root hub
Bus 004 Device 001: ID 1d6b:0002 Linux Foundation 2.0 root hub
Bus 002 Device 003: ID 04f2:b016 Chicony Electronics Co., Ltd
Bus 002 Device 001: ID 1d6b:0002 Linux Foundation 2.0 root hub