Comment 6 for bug 961997

not only the cursor keys dont work, also enter does no longer work in my case and that is pretty bad.
it happened today while i was upgrading from 10.10 to 11.04 (via do-release-upgrade in gnome-terminal) (so most probably other versions involved).
since such an upgrade takes quite some time it is very annoying because you can no longer work in new terminal windows for that period. a reboot after the upgrade "solved" it here too.