Choosing a German keyboard with "deadkeys disabled" creates "KEYBOARD=de-latin1" instead of "KEYBOARD=de-latin1-nodeadkeys" in /etc/sysconfig/keyboard. XF86Config file looks fine though.
Related to bug 16678.
I've verified this bug and I'm looking into a fix.
Fixed in CVS.
*** This bug has been marked as a duplicate of 15706 ***