Multiseat update under Ubuntu 08.10
The aforementioned multi-seat setup allowing two kids with two screens/keyboards/mice connected to one computer required a minor update under the new Ubuntu release. The Xephyr 'x11-server inside an x11-server' that is used to display two distinct sessions on two distinct monitors didn't seem to recognise the mice and keyboards anymore.

Somehow not explicitly specifying them helped. I.e. the calls to the script /usr/sbin/Xephyr-path.sh from /etc/gdm/gdm.conf now read

[server-Xephyr1]
name=Xephyr1
command=/usr/sbin/Xephyr-path.sh -display :0 -br -dpi 100 -xauthority /var/lib/gdm/:0.Xauth -screen 1280x1024
handled=true
flexible=false

[server-Xephyr2]
name=Xephyr2
command=/usr/sbin/Xephyr-path.sh -display :0 -br -dpi 100 -xauthority /var/lib/gdm/:0.Xauth -screen 1280x1024+1280+0
handled=true
flexible=false

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