Dual boot 12.04 and W7 - keybaord and screen not responsive

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http://askubuntu.com – I installed 12.04 using WUBI on a working W7 64bit system. both KB and mouse work perfect during the BIOS boot, and on the bootmgr, I can select Windows 7 or Ubuntu to load. Once I select Ubuntu, the KB and mouse seem to loose their power (light on the mouse and Numlock leds go off) After couple of seconds, the screen gets blurry. The screen pops back at the Ubuntu login screen, the mouse gets activated (light works, as well as mouse pointer is moving) However, the keyboard is not responsive to any click, nor does any icon on the login screen. - Using the mouse, I can't select the virtual k (HowTos)