Keyboard not working - works to hit F8 at startup

My parent's computer doesn't work with any keyboard except prior to Windows 7 starting up. Can hit Del or F8 to choose safe mode but as soon as windows loads (safe mode or not), then no keyboard works. I've tried 3 keyboards that work on other computers.

I've tried diff usb ports, restoring to restore points prior to the problem occurring, safe mode, installing drivers, anything I could think of. AVG scan. No issues in device manager, HID Keyboard Driver. keyboard.inf and keyboard.pnf exist in windows system32 somewhere.

The only weird tip is that one keyboard has one of those buttons that does same as power button and it works, it puts the computer to sleep. When the computer is asleep, the keyboard keys (eg. space) can wake it (I made sure mouse was unplugged) but as soon as computer is woken then they keys do nothing.

Thanks for any help!
 
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