[jan-jaap]

As far as keyboards go, I am currently just using a USB to ps2 adapter, as I don't have any PS2 keyboards anymore, should that be fine and the system sees the KB and mouse or does the o2 not like USB adapter's and should I grab an old PS2 keyboard and mouse off eBay?

Those little green and purple USB-to-PS2 adapters do not contain any circuitry. For a 'USB' keyboard or mouse to work with them, they must support both USB and PS2 protocols and switch to the correct one as needed. This was common in the early days of USB keyboards but for anything recent it's absolutely not guaranteed.