I doubt upgrading to 10.6 will help. Mine took a whole new keyboard / trackpad to fix it.
My 2¢, if you don't have AppleCare, get it. Call them, explain the problem and do what they recommend. Even when you think it's stupid. Just make sure you get the reference number for your case so you can refer them back to it when you call back. If what the tell you to do doesn't work, call back, give them the case number and tell them it didn't work. Eventually they tend to break down and let you send the thing in for a hardware fix to a hardware problem.
Good luck,
Bill