I have a Dell Inspiron 9300 and it shows the same behaviour, it fills with asterisks the input fields. My package version for kdm is also 3.5.5-0ubuntu3 (edgy).
-- (kdm) wrong keyboard behavior at first login https://launchpad.net/bugs/63615 -- ubuntu-bugs mailing list ubuntu-bugs@lists.ubuntu.com https://lists.ubuntu.com/mailman/listinfo/ubuntu-bugs