Comment 19 for bug 289918

I found that setting my keyboard on the client to Generic->102 key (Intl) fixed it for me. I'm running Kubuntu but I installed gnome specifically to address this issue (The KDE system config stuff is crap). Switching back to KDE, it also seemed OK. NB: I am using KDM as my DM.

Using evdev from the gnome configuration settings, oddly, did not stick for a gnome environment but did for kde (every time I decided to click to apply the changes system-wide).