Mouse and keyboard wont work

you need to change the keyboard lay out.
Windows 7 or Windows Vista

1. Click Start Collapse this imageExpand this image, type intl.cpl in the Start Search box, and then press ENTER.
2. On the Keyboards and Language tab, click Change keyboards.
3. Click Add.
4. Expand the language that you want. For example, expand French (Canada).
5. Expand Keyboard list, click to select the English (UnitedS tates) check box, and then click OK.
6. In the options, click View Layout to compare the layout with the actual keyboard.
7. In the Default input language list, click English (United Kingdom) - English (United States), and then click OK two times.
8. In the Regional and Language Options dialog box, click OK. Note The Language bar appears on the taskbar. When you rest the mouse pointer over this bar, a tooltip appears that describes the active keyboard layout.
9. Click the Language bar, and then click English (United States)

Windows XP

1. Click Start , type intl.cpl in the Run box, and then press ENTER.
2. On the Languages tab, click Details.
3. Under Installed services, click Add.
4. In the Input language list, select the language that you want. For example, select French (Canada) .
5. In the Keyboard layout/IME list, click English (United States), and then click OK .
6. In the Select one of the installed input languages to use when you start your computer list, click English (United Kingdom) - English (United States), and then click OK.
7. In the Regional and Language Options dialog box, click OK. Note The Language bar appears on the taskbar. When you rest the mouse pointer over this bar, a tooltip appears that describes the active keyboard layout.
8. Click the Language bar, and then click English (United States)

Windows 7 or Windows Vista

1. Click Start Collapse this imageExpand this image, type intl.cpl in the Start Search box, and then press ENTER.
2. On the Keyboards and Language tab, click Change keyboards.
3. Click Add.
4. Expand the language that you want. For example, expand French (Canada).
5. Expand Keyboard list, click to select the English(United States) check box, and then click OK.
6. In the options, click View Layout to compare the layout with the actual keyboard.
7. In the Default input language list, click English(United States) - English(United States), and then click OK two times.
8. In the Regional and Language Options dialog box, click OK. Note The Language bar appears on the taskbar. When you rest the mouse pointer over this bar, a tooltip appears that describes the active keyboard layout.
9. Click the Language bar, and then click English(United States).

Windows XP

1. Click Start , type intl.cpl in the Run box, and then press ENTER.
2. On the Languages tab, click Details.
3. Under Installed services, click Add.
4. In the Input language list, select the language that you want. For example, select French (Canada) .
5. In the Keyboard layout/IME list, click English(United States), and then click OK .
6. In the Select one of the installed input languages to use when you start your computer list, click English(United States) - English(United States), and then click OK.
7. In the Regional and Language Options dialog box, click OK. Note The Language bar appears on the taskbar. When you rest the mouse pointer over this bar, a tooltip appears that describes the active keyboard layout.
8. Click the Language bar, and then click English(United States).

How to make sure that the selected layout matches the keyboard Windows 7 or Windows Vista

1. Click Start, type osk in the Start Search box, and then press ENTER.
2. Match the keyboard on the screen with the physical keyboard to make sure that the layout matches.
3. To check the uppercase characters, click the shift key on the keyboard or on the screen, and match the characters printed on the keyboard.

Windows XP

1. Click Start, type osk in the Run box, and then press ENTER.
2. Match the keyboard on the screen with the physical keyboard to make sure that the layout matches.
3. To check the uppercase characters, click the shift key on the keyboard or on the screen, and match the characters printed on the keyboard.

Go to the Control Panel > Regional and Language Settings > go through all the tabs and change the settings to English-United States. I am willing to bet that the system is set for the United Kingdom. Go through all the tabs and change everything to English, including the system location to United States. Reboot afterward.

Your new keyboard is set up for the United Kingdom which has those keys switched. Go to the control panel > Regional and Language > Go through all these settings and tabs and make sure all the settings are set to the "United States-English", Go to the Ketboards and languages tab > when the window comes up, make sure that the top box states United States-US and below make sure that the keyboard is US, if there is another keyboard, like UK....you can remove that one. Now go through the rest of the tabs and make sure they are all changed or listed as United States. Reboot to set.

I had the exact same problem. I contacted Acer support and they sent me this solution that worked for me;

Please do the following steps to resolve this issue.
1. Click on Start > RUN
2. type intl.cpl in the Run box, and then press ENTER.
3. On the Languages tab
4. Click the Details button.
5. In the Settings tab, under the Installed services section, click the Add button.
6. In the Input language list, click the language that you want; English (United States) [or English (Canada)].
7. In the Keyboard layout/IME list, click United States-International, and then click OK.
8. In the Settings tab, under the Default input language section, change the language to English (United States) - United States-International [or English (Canada) - United States-International].
9. Click the Apply button and then the OK button.
10. In the Regional and Language Options dialog box, click the OK button to close the dialog box.
11.Notice that the Language bar appears on the taskbar. When you position the mouse pointer over it, a ToolTip appears that describes the active keyboard layout; English (United States) appears [or English (Canada)].

This Happnd to me too jus press the

left alt key and shift together and this toggles the input language to English and it will work 100%%%

maybe the devices are both defective or you mistakaly plug it to the wrong ps2 port.check its pin.

I would sure check the Region and Language setting in the windows control panel. Make sure it says U.S. (english).

I just got this answer directly from Acer. It worked for me. Hopefully it will work for you too;

Please do the following steps to resolve this issue.
1. Click on Start > RUN
2. type intl.cpl in the Run box, and then press ENTER.
3. On the Languages tab
4. Click the Details button.
5. In the Settings tab, under the Installed services section, click the Add button.
6. In the Input language list, click the language that you want; English (United States) [or English (Canada)].
7. In the Keyboard layout/IME list, click United States-International, and then click OK.
8. In the Settings tab, under the Default input language section, change the language to English (United States) - United States-International [or English (Canada) - United States-International].
9. Click the Apply button and then the OK button.
10. In the Regional and Language Options dialog box, click the OK button to close the dialog box.
11.Notice that the Language bar appears on the taskbar. When you position the mouse pointer over it, a ToolTip appears that describes the active keyboard layout; English (United States) appears [or English (Canada)].

I had the exact same problem. I contacted Acer support and they sent me this solution that worked for me;

Please do the following steps to resolve this issue.
1. Click on Start > RUN
2. type intl.cpl in the Run box, and then press ENTER.
3. On the Languages tab
4. Click the Details button.
5. In the Settings tab, under the Installed services section, click the Add button.
6. In the Input language list, click the language that you want; English (United States) [or English (Canada)].
7. In the Keyboard layout/IME list, click United States-International, and then click OK.
8. In the Settings tab, under the Default input language section, change the language to English (United States) - United States-International [or English (Canada) - United States-International].
9. Click the Apply button and then the OK button.
10. In the Regional and Language Options dialog box, click the OK button to close the dialog box.
11.Notice that the Language bar appears on the taskbar. When you position the mouse pointer over it, a ToolTip appears that describes the active keyboard layout; English (United States) appears [or English (Canada)].