broken input in wine/crossover after updating xorg

P.S. Running kubuntu gutsy (updated all the long way from edgy). Here's my xorg.conf in attachment
Now running xorg 7.2-5ubuntu13

If you are referring to the xserver-xorg-core update, there's a new one waiting. The update was broken, so please try the latest one and tell us how it works.

Okay. I just updated again... No change( Still the same trouble.

What if you downgrade xserver-xorg-core to the version prior to the first upgrade? Was there a wine update too?

Hm... Wonder where to take the prior packages, since in the apt cache I only have:
xserver-xorg-core_2%3a1.3.0.0.dfsg-12ubuntu8.1_i386.deb <--- seems to be the first version where the bug appeared
xserver-xorg-core_2%3a1.3.0.0.dfsg-12ubuntu8.3_i386.deb <--- must be today's update.
 Wine should NOT be the case because google picasa (that ships it's own wine along) is affected as well. I'm currently experimenting with building wine (later probably xorg as well) from sources to see if the bug pops out.

Oh, and forgot to mention. I use ru_RU.CP1251 locale instead of the default ru_RU.UTF8. May be this can be the cause (though I doubt since all used to work flawlessly for a long time, but will be trying to play with locale settings as well). Will post the results later

Changing the system locale to utf did NOT do the trick. Wine is not the case either(

Later discovered that this bug actually is a dupe of this one and the workarounds discribed there mostly DO work:
https://launchpad.net/ubuntu/+source/wine/+bug/68594
There must have been something changed in the /usr/share/X11/locale/locale.dir file in the recent updates. Cheers.

I am marking this bug as a duplicate of bug 68594 as you say it is. That bug is marked as Fix Released, and you seem to have the problem worked around.