OK, the fix is really, easy! But hard to find documentation for. Edit your XF86Config file, probably /etc/X11/DF86Config and add the following line under
Section "InputDevice"
Identifier "Keyboard1"
Driver "Keyboard"
Option "XkbDisable"
I definitely feel your pain. It took me a month before I got this one. It was so discouraging, I almost gave up on Linux.... Almost...