Messed up Keyboard Issue

Alright, i am using a Microsoft Digital Media Pro Keyboard, and it was working fine before, but now, whenever i play a game, or type, the keys seem to lag, severly. While racing and beginning a turn, it will either delay, or go right away but waaaay too long and send me into a wall. Or when playing a shooter like Crysis, it lags and causes me to just keep running. Please, can someone help me? Should i get a new keyboard?

How does the keyboard connect to your PC?

What sort of lag are we talking about? A second? A few seconds?

The keyboard connects to my PC via USB.
The lag we are talking about is usually about a second or two, either acting as if the key is still held down, or delaying the action for a second or two.

I tried changing keyboards since i had a Saitek Eclipse laying around. The problem remains but typing is fine now. Could it be a software setting somewhere?

Can you get into BIOS? I wonder if the Keyboard Typmatic rate is set at.

Additionally, what do you have running in the background when you bring up task manager?

Im not sure how to get into bios, but i can check that. While running task manager i have the following running
alg.exe
csrss.exe
CTDetect.exe
CTDVDET.exe
ctfmon.exe
Cthelper.exe
CTSVCCDA.exe
CTSysVol.exe
egui.exe
ekrn.exe
explorer.exe
itype.exe
jusched.exe
lsass.exe
mdm.exe
msnmsgr.exe (off while playing games)
MsPMSPSv.exe
nvsvc32.exe
oasrv.exe
oaui.exe
rapimgr.exe
rundll32.exe
scvhost.exe
services.exe
smss.exe
spoolsv.exe
svchost.exe (7 of these)
System
System Idle Process
usnsvc.exe
wcescomm.exe
winlogon.exe

Anything there that shouldnt be? i googled my problem and something about a thing ATI installs. Ive never used and ATI product before, so i dont think that is the case. What is this typmatic thing tho, and could it be causing my problem?