Keyboard blocks every process where it is used

Hello everyone!

I've got a PC with Windows 7 Ultimate x64.
I've been having problems with explorer.exe for some time now, basically it randomly turns every folder I have opened into a bold list of files, i.e. all files are shown in bold, I am unable to open any more explorer windows and my taskbar behaves oddly (freezes, can't click, etc).
When this happens I simply kill explorer.exe process and restart it and eveything's alright.

Now, since I've updated the driver on my AMD Catalyst drivers, my keyboard has gone berserk: if I open an explorer window and press any key, it freezes and stops responding, same with notepad, renaming folders, browsing, command prompt, you name it! If i press a key, the process in question freezes.

I've looked at event viewer logs, but every time the error just says "Unknown".

Can someone help me with tracking this? I can't even launch "sfc /scannow" because when I type anything in the cmd it freezes...

OK, error update: aparently, the only program that seems to not explode when it receives keyboard input is google chrome. IE freezes like any of the other programs.

does this happen in safe mode? There may be a third party program or driver screwing with windows.

If you know when this exactly happened, try a system restore point.

Ok, I seem to have solved it: I managed to run sfc /verifyonly and found a dll that couldn't be accessed, t2embed.dll. Apparently this is common in win7 x64 so I downloaded the Msft Fixit that disabled the access control to this dll, restarted the PC and all is well... not sure what this did exactly but it seems to have worked.