Ubuntu/Gnome not working properly

I just installed the updates to the linux Kernel that were available today, February 13,2008. After installation I rebooted my system and logged back in. After logging in everything is fine for about a minute then I lose mouse and keyboard functionality. I can see my curosor move on the screen, but I can not click. I can not type or use any keyboard shortcuts as well. I have tried other mice and keyboards, still the same problem. If I remove plug-and play hardware such as my USB wireless device, it recognizes when I remove and re-install it. So I am wondering how I may regain the functionality of my keyboard and mouse so that I may fix this problem. Thanks.