I've made a little progress - I did clear my password, so I can click login. As it was loading my startup items I tested the keyboard with ctrl-esc and the Start menu popped up. Suddenly the "Add New Hardware Wizard" popped up and said new hardware had been found etc. I said check online for drivers. If failed. After that point my keyboard didn't work. Used the mouse to install VMware tools. Also confirmed internet works by opening Chrome and seeing my web pages pop up.
So I used the mouse to get to device manager. Under keyboard it's listed as "Standard 101/102 keyboard or Microsoft Natural Keyboard" with the yellow exclamation mark. Double clicking it shows an error along the lines of "this device could not be loaded because the registry entry is incorrect or missing" (or something similar, I need to bring it back up again to get the exact error). Tried to Uninstall it then use the Add New Hardware wizard, it found it exactly the same and couldn't find a driver for it.
Powering down the system now to try disabling USB Controller. Although I need USB passthrough of a wireless USB adapter, that was the whole reason to do this - so I could put Win 7 on my laptop but still have my XP available with its proprietary Wifi software to access my corporate network.
Will edit once it reboots without a USB Controller...
Edit: Removed USB controller, rebooted, and now I can move the mouse but can't click anything - so can't click Ok to login. *sigh*
Edit: Adding USB Controller back lets me click with mouse again. Connected a USB keyboard, couldn't connect it to the VM, added the USBdeveiceHIDLast=true line to my config file (the other shorter line something like USBdeviceHID=true was already set). Connected the keyboard to the VM, it didn't work at the login screen, windows detected it and installed the driver for it, but then IT showed up in Device Manager with the Excalamation and the same error as the other keyboard: Windows cannot start this hardware device because its configuration information (in the registry) is incomplete or damaged
It just detected the keyboard and added the driver successfully and yet the registry entry for it is already incomplete or damaged?? Doesn't make sense. I wish I could do a repair reinstall of XP, but like I said before, the XP CDs that even see the hard drive don't see a Windows install on it. And I did get the floppy VMware SCSI driver loaded, I had it set to the image but not connected to the VM. I connected it to the VM, booted XP again, added the VMware SCSI driver from floppy, and it still doesn't see that there is an install of Windows on the C drive. It just gives me the install options of install with or without format - and my understanding is install without format will wipe my installed programs essentially. I need a repair reinstall and can't get one. And even a boot to safe mode with command prompt I lose keyboard once Windows loads.
Edit: Got my hands on an XP SP2 CD that DOES see the windows install. Doing a repair reinstall, then I'll install SP3 - IF the keyboard works. If it doesn't then I've screwed my XP VM up even worse by going down to SP2.
Edit: Nope, even in the XP SP2 setup screens the keyboard doesn't work. Great. Now I'm stuck at an activation screen. I suppose I could clonezilla off my nice Win7 install, reimage back the XP image I made with clonezilla (using dd since it was encrypted), retry making a VM, reimage with win7, and try all over again. I've already spent at least 8 hours on this. Forget it, I'm done. Oh and now I can't even mouse around in XP as it's demanding a key - even if the keyboard were working I don't have one as this system was shipped with win 7, has the cert for that on it, but our wonderful corporate IT department ruined it by putting XP on. Thus why I wanted Win 7 on but still the ability to access the corporate wifi via the XP client.