Keyboard cannot be identified.

Yep, same here. Same keyboard, same connection. Mid-2011 iMac (my mother's; neither of my own Macs has this issue). Running 10.6.8 (all current updates installed). The keyboard itself works fine; one just has to dismiss the setup assistant, but it's annoying and it suggests an underlying problem I'd love to resolve.

Keyboard Keys Do Not Respond

Keyboard Doesn’t Work

I read the OP too quickly. ohmai is having problems with the keyboard actually not working. In my case, the keyboard was working just fine; it was just that Keyboard Setup Assistant would pop up at each reboot, even though the keyboard was a standard wired Apple Extended.

In my case, I think I've found the problem. My mother is usina a Logitech mouse that communicates with the computer via a USB dongle. I had occasion to unplug the dongle and plug it back in (not knowing what it was, I thought it was a micro USB thumb drive, even though no drive was showing up in Finder or Disk Utility). Sure enough, every time that dongle gets plugged in, Keyboard Setup Assistant pops up. No idea why the system thinks the mouse dongle is a keyboard, but at least I've ID'd the hardware that's triggering the problem.

Maybe your articles will help ohmai, although I really hope s/he has resolved his/her problem by onw.

I had this problem as well. If you select skip after hitting the "key to the right of the left shift button" you can choose an american keyboard.