Maggie - that's definitely a good point, but it's also one that I considered when buying - this KVM emulates the keyboard, so the operating system thinks it's there. This has worked flawlessly for me in the past.
Even if it hadn't though, yes, I was booting it up with that port selected
And it still doesn't work with the keyboard plugged directly in to the PS2 port. :\
Like I said, it's something software (I'm nearly certain, though I wasn't last night - it took me hours to figure this out), but... I have no idea what or why.