Please test the upcoming 2.6.20-4 kernel. I saw a fix go in that sounded similar to your problem.
** Changed in: linux-source-2.6.20 (Ubuntu) Importance: Undecided => Medium Status: Unconfirmed => Confirmed -- system continuously boots/reboots when usb wireless keyboard is plugged in https://launchpad.net/bugs/42297 -- ubuntu-bugs mailing list ubuntu-bugs@lists.ubuntu.com https://lists.ubuntu.com/mailman/listinfo/ubuntu-bugs