From personal experience, I had problems with a USB adapter on a PS/2 keyboard on my KeyWiz.
IIRC, the toggle switch stopped working and a few other quirky things. Took the USB dongle off and the problems went away.
Not your *exact* situation, but thought it might be helpful.
Well, from personal experience, I had problems with a USB adapter on a PS/2 Keyboard without the KeyWiz.
Yes, I use a KeyWiz. Yes, I was too cheap to buy a USB keyboard, and bought a PS/2-USB adapter (also avoided having to explain why I needed a different keyboard when nothing was wrong with the other one.) Yes, I have had others verify that the problems I was seeing did not occur with a true USB keyboard.
Adapter was a QVS brand from MicroCenter, but I'm not sure that matters.
Problems - Keyboard will stop typing shifted keys if you hold down the shift button and type.
(From before I got the KeyWiz) - I was playing BattleZone. If I held down the "I" key the entire time, the tank would spin left (actually move forward and turn left). Then if I pressed the "D" key it would spin left faster. So far so good. Now if I release the "D" key, the tank will spin slowly left and then stop. (It should keep spinning because the "I" key was still held down. Does not happen with the regular PS/2 keyboard. Was able to verify the same behavior in Notepad. RandyT verified this does not happen with a true USB keyboard.
Also, I sometimes get an apparent "Stuck key" when I first hot-swap the KeyWiz into the system. Doesn't always happen, hasn't happened lately, not sure if it's related.