I have been having this problem since I installed ubuntu 11.10 on my laptop. After installation everything was fine, I installed gnome 3 and restarted computer. It was working fine until I upgraded nvidia driver from 173 to the "recommended" via additional drivers and restated again. I have noticed gnome with effects fails but with no effects working fine. I re-format the computer and made fresh install again and installed gnome 3. It was working again until I upgraded the nvidia driver. I have tired to install nvidia before and than gnome 3 but this did not work either. Nothing(keyboard, mouse even on/off button) when I turn it on with gnome(with effects). If somebody has any idea how to solve this, please tell me. Unity is not what I really want to use.
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