Yes, I'm having exactly the same problem. Keyboard function is disabled (I can't even get the menu up by pressing esc...)
In the midst of typing this post, I realised that I had the game in windowed mode (although you couldn't see the window.) I simply selected the full-screen option in the video menu and now the keyboard works.
Try that, hope it works.
Brilliant game! Now it works for me...
http://teachergamer.blogspot.com