That is a nice trick and it works for me in the sense that I do get access to the n900 and I can type characters with my PC keyboard.

However N900 interprets it as if I am typing on its keyboard, meaning when I type 123 on my PC keyboard N900 displays qwe, and if I type qwe on my PC, well it displays qwe again. If I press the Function key on N900 and then press 1 on my PC keyboard it displays 1. It is not convenient at all.
Further at some point the Enter key began opening and closing the virtual keyboard instead of marking end of line. I got the N900 a week ago so I am yet to get familiar with it.

Actually I am running Ubuntu in Virtual Box on top of Win XP if that makes any difference.
I shall try synergy later.

Please feel free to comment on the problem.