I prsume your keyboard is USB? If you can find a friend who has an older keyboard with a PS/2 connector, you might try that, F8 again and select Last Known Good.
It's not yesterday's updates per se, because I have them on all my PCs (I hate the 2nd Tuesday in the month because I run around the house like some mad woman making sure 1 Vista 64 bit, 2 Server 2008 R2 64 bit, 2 Windows 7 32 bit and 4 Windows 7 64 bit are all downloading correctly and rebooting if necessary. All keyboards and mice are working fine here.