The part where you reboot and the switching does not work is a known issue that has been resolved.
In Ubuntu 8.10 it is fixed. However, for Ubuntu 8.04, the packages have not been updated with this fix.
What happens is that with autologin (I assume you have this enabled), the keyboard layout settings are not set properly, so you need to invoke the Keyboard Indicator applet, and if you make any change (tick, untick), it applies the full settings to the system and now everything work. See the description at the top for more.
Regarding the Both Shifts option, this one works for me, and it appears to work for you as well.
It is another big issue in the X.Org X server that it has been identified and it is being worked on. Personally, I have switched to Both Shifts and I find this workaround quite convenient.
Josh:
The part where you reboot and the switching does not work is a known issue that has been resolved.
In Ubuntu 8.10 it is fixed. However, for Ubuntu 8.04, the packages have not been updated with this fix.
What happens is that with autologin (I assume you have this enabled), the keyboard layout settings are not set properly, so you need to invoke the Keyboard Indicator applet, and if you make any change (tick, untick), it applies the full settings to the system and now everything work. See the description at the top for more.
Regarding the Both Shifts option, this one works for me, and it appears to work for you as well.
It is another big issue in the X.Org X server that it has been identified and it is being worked on. Personally, I have switched to Both Shifts and I find this workaround quite convenient.