The two lights power up as soon as I connect it without blinking and stay on.
It has to be hardware, even though I wish I could easily solve it, I think I will need a replacement. Hopefully this third time they keyboard works and for a good period of time.
I'm disappointed with CoolMaster however. One would think that they test their RMA replacement before shipping.
That happens very occasionally with my boards as well, usually it means I have a bad connection and need to replug the cable. In your case, there might be a bad internal connection, perhaps on the mini-usb daugherboard or between the two.
I had to RMA a cable from Cooler Master once. The first cable they sent me was for the wrong board. The second cable they *said* they would send me never arrived. The third cable was the right one, and fortunately it worked. I don't complain because I got a free cable out of it -- conveniently enough, I had just bought a RK9000 that didn't come with a cable, so that solved several problems
That said, I know it can be frustrating, but they do usually get it right eventually. Hopefully another RMA will solve it.