101/102 keyboard preventing hibernation

I have a new (12/23/04) Dell Insperon 8600 with Windows XP SP2. After I got it I installed a couple of software packages for my digital camera and MP3 player as well as several CD’s of music. After doing this, when I close the notebook computer’s lid, instead of shutting down, it gives the error message “The device driver for ths ‘Standard 101/102-Key or Microsoft Natural PS/2 Keyboard’ device is preventing the machine from entering standby mode. Please close all applications and try again. If the problem persists, you may need to update the driver.” When I tried updating the driver it reported I had the best driver already… Any thoughts or suggestions?

Cheers,
Matt