The system:

Dell System GX280
Intel p4 2.80Ghz
512Mb Ram
40 Gb hd

When attempting to install windows onto a formatted hd (formatted with another computer externally) I ran into a problem. The USB keyboard (no ps/2 ports) works fine in the BIOS up until I get to the screen in which it gives me the options to

1. To set up windows xp now, press enter.
2. To repair, press R
3. To quit setup, press F3

As soon as this screen displays, I can see the light above the number keys on my keyboard turn off and I can not press enter to install. I am stuck.

Things I have tried:

1. Checking every usb port, they all dont work for keyboard
2. checking the bios to see if usb is enabled, its enabled
3. checking if the usb has POWER by plugging in mouse wireless usb with light, it lights up
4. trying a different windows xp install DISK, I've tried 3, same result

And I repeat, I dont have a ps/2 port, which is how all the other posts Ive read on this manner were solved

Please help me!You SAID the USB keyboard has the light on it for the Nym Lock. So it has power.
Best guess is the keyboard is bad.
Wait -
Did you try the keyboard only, no mouse or other USB device?

Keyboard works perfect, Im using it to type this on my ALTERNATE computer. And like I said, it works perfect up until the screen described. And also, a wireless mouse I plugged in lit up but there is no cursor arrow on the screen so I cant tell whether it works properly or not.You might just need the BIOS update A08, which fixes:
1. Update Video Option ROM to version 1235.
2. Improve keyboard parser functionality.
3. Add Service Tag edit feature in Setup.
4. Improve detach support for USB keyboards.

http://support.dell.com/support/downloads/download.aspx?c=us&cs=19&l=en&s=dhs&releaseid=R119219&SystemID=PLX_GX280&servicetag=&os=WW1&osl=en&deviceid=162&devlib=0&typecnt=0&vercnt=7&catid=-1&impid=-1&formatcnt=0&libid=1&typeid=-1&dateid=-1&formatid=-1&source=-1&fileid=158334Good suggestion. I am running A04 now. Will try and post back whether it works or not.I normally wouldn't recommend BIOS updates, but in this case, it just might fix it.
You'll have to run BIOS update from DOS, which is a good thing.  Don't want Windows interfering with the keyboard, just when you need it most.Man that was a PAIN to find a usable 3.5" disk. I updated to a08 and the problem persists. Got anything other ideas?You'll have to search the Dell Forums.  You're not the only one with Optiplex USB keyboard problems.  I would try all the USB ports, one at a time, restarting computer after each one.