I installed 12.04 using WUBI on a working W7 64bit system.

both KB and mouse work perfect during the BIOS boot, and on the bootmgr, I can select Windows 7 or Ubuntu to load.

Once I select Ubuntu, the KB and mouse seem to loose their power (light on the mouse and Numlock leds go off) After couple of seconds, the screen gets blurry. The screen pops back at the Ubuntu login screen, the mouse gets activated (light works, as well as mouse pointer is moving)

However, the keyboard is not responsive to any click, nor does any icon on the login screen. - Using the mouse, I can't select the virtual keyboard, nor the shutdown icon - like it's not accepting any mouse clicks.

The following Q&A didn't answer:

Keyboard not responding at login with 12.04 dual boot on toshiba satellite L775 which links to a post on the web

I also tried 12.04 - Windows 7 Dual boot - not responding to keyboard in boot menu - that goes beyond the login screen, but still didnt' assist me.

It's a wired USB KB

The board is an Intel board, and there isn't even a PS/2 connection anymore.

Tried moving around the USB's Tried removing the Mouse, and only have the KB.

Neither helped.