Try it with Protocol Mouse (NOT Smartreader, not internal)and dont try newer FTDI Driver (wont work).
On Ubuntu 9.04 al is running fine, on 9.10 nothing ist running, and one Difference is a new FTDI.

Also play with no mhz and no cardmhz and fixed Baudrate on Smargo, but only on Protocol Mouse.
Remember, if you one Time use Smartreader Protocol, you must remove your Smargo for to work again on Mouse Protocol! If you dont, no Card will be recogniced