very slow keyboard input after update

[miatawnt2b]

It's been forever since I've run a dist-upgrade on my quantal install (probably over 8 months) so today I did just that, and installed new catalyst drivers 13.12 for gnome and rebooted... whew... it appears everything works. log into gnome, no problem, hit my search key, type 'terminal' no issues. Type in the terminal nothing, hit enter a few times, nothing. Suddenly terminal input displays all teh input I typed about 10 seconds ago. So, I hit my search key, type 'firefox' no issues, click in firefox to type, nothing. 10 seconds later, the input appears.

So the keyboard is working when I search in gnome, but within a program, there is massive delay.

I have no idea how to diagnose this. Any help?

Thanks!
-J

[miatawnt2b]

Here's another datapoint...

By default I run Gnome desktop. If I log ingo Ubuntu desktop instead the problem goes away. Likewise Gnome Classic doesn't have the problem. Only Gnome (3.6)