Without trying to bypass the password, or trying to come up with a password bypassing installation boot disk etc... Figure out how to install keyboard drivers... Maybe in safe mode, maybe the laptop needs to have it's keyboard support enabled on the USB port VIA the BIOS; if you can access that without a keyboard????

What else have you tried to do?

XP has default keboard drivers for USB, just getting it to recognize that there's a usb keyboard rather than the standard keyboard.. not as straight forward as just plugging in the usb keyboard and turning it back on...

Your best bet is to have the laptop repaired.

As S Templar has mentioned.. be warned.. It's against the forum rules to discus circumventing "passwords" security, or copy-protection... Users will have their threads closed, banned etc..