I installed Fedora7 eight times in my PC and I tried ps2 and usb different key/mouse combinations. And it always happened. At the licensing screen mouse gets lost, then a few seconds later keyboard gets lost. The HDD is a Seagate 40GB ATA IV, processor P4 3GHz, Motherboard ASUS P4S800D-X, 2.5GB RAM, NVIDIA 6200 video card, Promise 300TX4 SATA controller (not used).
I installed SuSE, WinXP, Server 2k and 2k3 in the same PC with no problems at all.
I'm almost about to give up.