Comment 3 for bug 74006

CAPS LOCK also gets stuck during a login interaction on Ubuntu Server Edition, 6.06 LTS.
Seems most likely to occur after terminal is logged out/idle for at least a few minutes, but I cannot confirm this 100%. To reproduce...
If monitor is blank, enable it by pressing shift key.
Type part of username and then press CAPS LOCK key.
Finish username (which will now partly be in the wrong case) and press enter.
Password prompt will appear in UPPERCASE!!!!! You will notice that you cannot disable CAPS LOCK by hitting CAPS LOCK or SHIFT key.
Type an incorrect password and press ENTER.
You will get a LOGIN INCORRECT message in UPPERCASE
And then LOGIN prompt will appear in UPPERCASE
CAPS LOCK is still stuck on!!!!

Seems to fix itself after login attempt expires. This would suggest that there is something seriously amiss with OS keyboard logic. I use a simple server configuration with VGA framebuffer on 1024x768 and PS/2 keyboard (no active mouse). The problem is NOT always repeatable which might indicate some timing issue whereby OS keyboard logic gets itself into an invalid state, possibly due to low OS task priority after idle periods.

If you change over to other virtual terminals (Ctrl-Alt-Fx), problem is not present, so it is definitely OS-related. Having said that, problem can be made to appear on any virtual terminal using above steps.

Surely a bug as serious as this (on a stable server platform with LTS) needs to be escalated.