Andy:
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"When you say you have "done" this program, I assume that means you have tested it with a real AT keyboard and seen it working? "

YES! I could send you the code if you are interested :)
This is the respond that appear in my hyperterm window after power up and I quick-pressed the "spacebar" once:

====8><====

Waiting for keyboard....
AA 29 F0 29

====8><====

"Are you sure that this scanner works at all?
Have you tried it with a PC? "

YES! The scanner works fine with the PC with or without keyboard attached :(

~fhy