Well it should work. Like I said, try removing all other USB devices other than your mother board first.
Second, try using a USB/PS2 adaptor with your keyboard. Should be purple I think, but the green mouse one might work too, not sure.
Third and final try, with no USB connected, reset the BIOS using the jumper on the mother board, then connect the keyboard and try again.
I really can't think of much else right now.