Server in a restart loop when PS/2 keyboard is plugged in

We have a brand new server running on Dual Xeon 3.06 with a Tyan S2723 board. It works fine with USB keyboard for the most part. We get a device failed to load: i8042prt  error in the log everytime. If we plug in a PS/2 keyboard, the server would not boot, it just restarts whenever it's about to load the OS and occasionally in the OS too. Any suggestion?
gotdoughAsked:
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gotdoughAuthor Commented:
Also for PS/2 keyboards, it can get me into bios by pressing del key. But once I'm in BIOS menu it restarts as soon as I press a key.
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venom967371Commented:
ok try this:
open registry editor , regedit.exe
go to HKEY LOCAL MACHINE
expand  SYSTEM
expand CURRENTCONTROLSET
expand SERVICES
now seek down to find  i8042prt
once found expand it and go to the left panel at the setting that reads : "start"
double click on that and change the setting from "1" to "4"
this sets the i8042 service from SERVICE_BOOT_START to SERVICE_DISABLED.
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venom967371Commented:
well check the bios in the usb the ps/2 might be disabled
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_Commented:
Try a different keyboard.

Clearing the CMOS might default it to PS/2.
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sciwriterCommented:
Sounds fairly serious.  You might want to consider the possibility that the MB is bad.  Were you EVER able to use a PS/2 kb, or has it never worked with one?  If the latter, I would tell the supplier that the MB might be bad, and you might be expecting them to send you out a new one -- unless of course, they want to walk you through a fix where the PS/2 kb will work long term.  Act soon if this is a new system, before the first 30 days is up.  
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gotdoughAuthor Commented:
Yeah it has worked before, then it stopped working. At one point event he USB keyboard has stopped working until we changed the power configuration (24pin + 8 pin to 20 pin + 4 pin + 12v 4pin)  - and that made the i8042 error stop too with USB keyboard.

Seems like something is badly deteriorating. Tried almost everything people mentioned here. I'm guessing RMA is the only way to go. Due to time constraint we need to finish the server setup then get the RMA and swap it out
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sciwriterCommented:
AS I said, if it is totally new and you have no data on it yet, you could try installing a second "throw away" copy of XP into a different drive letter (if you have one), so your Program Files directory is not wiped out.  That will take 1 hour.  Then if it will not find the PS/2 keyboard, it is an INSTANT RMA.
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gotdoughAuthor Commented:
This is a dual xeon server that's going in a cluster environment. I'm just going to go ahead setup OS and such and presume this is not a compatibility problem. I can just swap out the board later and everything should work fine. This is the backup node anyways.
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_Commented:
Thank you much.    : )
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