If relevant the keyboard doesn't work in safemode once logged in either.
The drivers listed in CP - classic view - keyboard - hardware are:
Standard PS/2 keyboard
Microsoft eHome remote control keyboard keys
Microsoft eHome MCIR keyboard
Microsoft eHome MCIR109 keyboard
All of which Vista reports are working correctly, none of which can be uninstalled which I think is only because they're the default.
Also, holding down fn and then pressing f8 which has a picture of a lock on it does nothing, in normal mode or safemode.
I'm thinking malware or is this ruled out because the problem also occurs in safemode?
I was going to try Bitdefender boot CD, Malwarebytes Antimalware and Microsoft Security Essentials.