This is an awful lot of trouble from an apparently simple error.
In Safe Mode, right-click My Computer and select Manage. Then go to the Event Logs. We're particularly interested in the System log. Anything interesting there? Look for entries with a red icon.
Also, open My Computer, right-click C:, select Properties, go to the second tab and click the button to check the drive.
With regard to the keyboard issue, if it's a USB keyboard, try plugging it into a different USB port - preferably a different hub too (e.g. if it's plugged into a socket at the back, plug it into one at the front).
One more thing: don't be afraid to wait. If it seems to have got stuck, leave it for 5 minutes. Windows may just be waiting for something to time out.