I'm having the exact same problem, although I'm using a normal keyboard (one with a ps/2 connector, I think that means it's an ATX keyboard)
You wouldn't by any chance be using an Asus A7A266 mobo would you? Alot of people (including me) have had problems with it, overheating, PCI slots not working and other such nonsense. Perhaps it's using some strange hardware configuration (non standard keyboard interrupt? I'm not a hardware guy) that *nix have a hard time with. Keyboard works fine for Win2K though.
I had no problems getting Slackware 8.0 to install on an Intel D8155E mobo with the same keyboard.