I've been having a possibly related issue with the same keyboard/mouse combo. Have you tried unplugging the dongle and then plugging it back in? While awkward, this works for me. I can't figure out why this is happening, but I think it has to do with whether the dongle is in Bluetooth adaptor mode or (as you call it) 'legacy' mode. I think plugging it back in after boot triggers this legacy mode, as it doesn't show up under the bluetooth menu. This is actually the desired behaviour for me, since I triple-boot the system and re-pairing bluetooth every boot is not a fun time.
dmesg seems to agree, as the dongle seems to show up as a USB hub with a keyboard and a mouse attached (see attached). -Stuart ** Attachment added: "dmesg" http://launchpadlibrarian.net/23207703/dmesg -- install or LiveCD fail because of bluetooth KB/Mouse https://bugs.launchpad.net/bugs/287303 You received this bug notification because you are a member of Ubuntu Bugs, which is subscribed to Ubuntu. -- ubuntu-bugs mailing list ubuntu-bugs@lists.ubuntu.com https://lists.ubuntu.com/mailman/listinfo/ubuntu-bugs