Index: xen-3.2-testing/tools/ioemu/vnc.c
===================================================================
--- xen-3.2-testing.orig/tools/ioemu/vnc.c	2008-01-16 13:19:03.000000000 -0700
+++ xen-3.2-testing/tools/ioemu/vnc.c	2008-04-04 13:12:52.000000000 -0600
@@ -1181,13 +1181,14 @@
 
     if (is_graphic_console()) {
         /*  If the shift state needs to change then simulate an additional
-            keypress before sending this one.
+            keypress before sending this one. Ignore for escape key, need to
+            enhance for other non shiftable keys.
         */
-        if (shift && !shift_keys) {
+        if (shift && !shift_keys && keycode != 1) {
             press_key_shift_down(vs, down, keycode);
             return;
         }
-        else if (!shift && shift_keys) {
+        else if (!shift && shift_keys && keycode != 1) {
             press_key_shift_up(vs, down, keycode);
             return;
         }