Comment 14 for bug 528720

- keyboard and/or mouse(*) freezing
- Mouse(*) & keyboard freeze at logon screen

This affected me while upgrading from Ubuntu 9.10 to Ubuntu 10.04, and I don't remember which package was installing at that moment. The only solution I found to complete the upgrade was to [Reset] the computer and [e]dit the GRUB kernel entry to add the "noapic" as an argument following the "splash" one.
Then I needed to run in a terminal:

sudo dpkg --configure -a

This completed the version upgrade, and after I've edited the file /etc/default/grub to change this first line by the second one here shown:

GRUB_CMDLINE_LINUX_DEFAULT="quiet splash"
GRUB_CMDLINE_LINUX_DEFAULT="quiet splash noapic"

And applied the change for a permanent effect, and the rebooted:

sudo update-grub2
sudo reboot

(*) Note that, after the "freeze", if you plug an USB mouse, it works.