I'm pretty sure the only reason it was working was because I was in a virtual machine. I believe it is connected through PS2 as I have a laptop, a Dell Inspiron 1501. I'll have to see if I have any spare keyboards to try

I seem to have this problem of my keyboard freezing up about every 5 seconds as I type, then unfreeing about a 2 seconds later. I am sure this is a hardware problem as I have reinstalled XP twice. Right now I am working on a virtual machine with Tiny XP installed and it works fine. I'm going to switch to Tiny XP as my host and see if that fixes anything. Any help would still be appreciated.