Just in case it somehow is the filterkeys prob, try pressing both shift buttons at the same time. Then see if there's any difference.
No diff, try hitting both at same time twice. If no diff, try holding left shift and pressing f7, then press rt shift 3 times.
If none of that makes any difference, it may at least eliminate the stickykeys thing as the problem, although there are registry settings you could check for those also.
If you go to Control Panel-->device Manager-->View-show hidden devices...,
then uninstall all Ipac and keyboard devices, then disconnect all Ipacs/keyboards.
Shut down.
Plug in only 1 keyboard (perhaps the usb keyboard if the ps/2 was giving the initial problems).
Reboot, check device manager for the usb keyboard and all drivers, etc are a-okay.
Test it out, if still laggy, try the both shift at same time, etc (as above).
Then, still probs..goto Control Panel--->Keyboard--->Speed tab
Check that repeat delay is near slow, the repeat rate is all the way to fast, cursor fast..
You can also check the hardware tab, it should just show what you saw in device manager,
the one keyboard, the location, status (working properly), etc.
If it's none of that, and nothing strange in the bios, and bios update doesn't help, there are a couple registry settings you could check.......if all that and the 'live' linux distro doesn't rule anything out......a big hammer won't solve anything, but a little 'smashy smashy' might feel good.