I recently bought a KeyWiz40-Eco and it worked perfectly. I was using it with an old PC from 2006 that was barely fast enough for current MAME, so I bought some newer hardware (Intel DH55PJ motherboard, Intel Core i5-650 CPU, and 4 GB of DDR3 RAM). This Intel motherboard only has one PS/2 port, which can be used for either a mouse or keyboard. I've confirmed that a regular PS/2 keyboard works fine with it, but the KeyWiz doesn't work with it at all; not in the OS, not in MAME, and not in the BIOS settings. On the slim chance that the KeyWiz somehow died exactly at the same time that I swapped different hardware into my MAME PC, I have confirmed that there's nothing wrong with the KeyWiz by connecting it to an old Windows 98 PC from 2001, and it works perfectly with that.
In the description on GroovyGameGear's website it says, "The PC thinks the KeyWiz is a standard PS/2 keyboard," but in the case of that Intel motherboard, a standard PS/2 keyboard works fine with it but the KeyWiz doesn't work at all.