OK long time since I got back to this but still same problem.
Tested keyboard on my Vista laptop, lets me chose a pair code, and its connected and working in seconds. So keyboard still works.
Back to the Windows 7 PC, paired up another bluetooth device, and its connected and working in seconds.
So why does Windows 7 not like my Apple bluetooth keyboard? Currently using latest release candidate, but its still the same as the beta I posted originaly about. It gets as far as asking for the code, but only after I have pressed enter on the apple keyboard, then after about 3 secs it just says error, if I but in the code or not. Any ideas?