Wireless Keyboard Types Random Symbols

I bought a wireless mac keyboard and a wireless mouse. My wireless mouse is working fine, however my keyboard is doing very unusual things. I can connect the keyboard and I can type, however, only when I type the spacebar key, the keyboard goes wacky and starts typing random symbols. I have to restart the keyboard and connect again, but when I type a "space" it goes crazy again (actually other keys do this too, I just checked). I have tried everything: 1) restarting keyboard and computer 2) "forgetting" the device and reconnecting. 3) changing the batteries 4) turning Bluetooth on and off. 5) updating software. 6) Google. Everything.

Please if you have any suggests I would greatly appreciate it. I am thinking about returning the device or exchanging it. Thank you.