I have the same problem. Settings seem stuck near minimum for delay, and
maximum for typematic rate.

Auto-login is NOT enabled.

Problem is not affected by whether I use my PS2 keyboard, or plug in a
USB keyboard and attempt to adjust settings with that.

Installation of Intrepid was a full installation onto a freshly
formatted partition for / , /usr/, /var. /home however, was carried over
from the previous (Gutsy) version.

My Intrepid Ibex has regularly been updated, but this has not affected
the problem.

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gnome-keyboard properties has no effect in 8.10
https://bugs.launchpad.net/bugs/289951
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