I have pretty much the same Compaq model (CQ50 130 US) and it is having the exact same problem when I go to update to the Release Candidate of windows 7. Did you ever find a fix for this? Can the drivers for the keyboard be rolled back, or uninstalled and another version installed possibly? It halts the installation of the new O.S. and no love anywhere on the web in regards to this... I would love to test the RC, but it wont allow me to install... And my desktop is now crashed (sort-of) due to the nvidia video drivers not being compatible somehow, and the monitor is not recognizing properly... I cant get it to recognize being plugged in, and its now impossible to see anything I am doing to fix it...
Someone please save me!
-Jason