ok... so, I solved the problem the simpler (yet longer?) way. I completley re-installed 2008 without restoring the backup, paired the keyboard - which worked. Then I restored my backup.

Now, I'm having the same problem as others out there... once I use the keyboard, the on-screen keyboard won't show up.

Regretting the update... not sure what good its doing me!!

suggestions? did anybody resolve this?