Description of problem:
If you turn on the "Locate Pointer" feature in mouse preferences, it
will cause vnc viewer sessions to interpret control keys as non-control
keys.  So pressing "ctrl-c" in a terminal window, will produce the
letter "c".  Ctrl-X in xemacs will produce the letter "x" in the editor,
and so forth.

How reproducible:
Always.

Steps to Reproduce:
1. Desktop -> Preferences -> Mouse
2. Select the "Cursors" tab
3. Check the "Locate Pointer" checkbox.
4. Go into vncviewer, control a remote session
5. Open a terminal session and at the command prompt, press ctrl-c.  

Actual results:
The command prompt gives you a "c".  For example, you'll see:
[root@void ~]# c

Expected results:
Another prompt should appear.  For example, you should see:
[root@void ~]#
[root@void ~]#