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Hmm... I have an Ipaq 211 and also use Resco Keyboard Pro without any issues. My suspicion is that it is conflicting with something else. If you wanted to test that theory, you could clean reset and then just install Resco Keyboard. If it works okay, install other things one at a time until you find the culprit. That may take some time and hassle, but it might be worth it to you. (Or not)
Just re-read your post and the one difference I think I see between our setup is that I have not updated to the latest version of Explorer. (There have been some bug reports of v7.x of Explorer) I am using version 6.17 of Explorer and 5.01 of Keyboard Pro
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