Bluetooth Keyboard won't connect

I got a Microsoft wireless entertainment desktop set that included the entertainment 7000 keyboard and the wireless laser mouse 8000.
My problem is when I run the setup only my mouse will connect to the usb receiver my keyboard fails to connect and I have to cancel the set up.I've tried holding the button down on the back of the keyboard many times and it will start to flash green and red as it's trying to connect but it never does.I've tried replacing the batteries,Changing usb slots and turned off the wireless router(heard it could interfere) And nothing.Anyone have any ideas or am I stuck with a working mouse and useless board..


Btw Im running a clean install of Windows 7 32 bit.

if you have a open usb port try plugging your receiver into it. from time to time i have to change the port mine is plugged into.