Keyboard doesn't work in Mac RDC

This could be something really stupid, but I can't seem to get the
keyboard to work when connecting via RDC 2.0 beta to a windows 2003
server. The mouse works fine, but I can't type anything with the
keyboard in the RDC window. The strange thing is that OPTION+F1 (Start
menu), and OPTION+F2 (context menu) work (i.e. they bring up the start
menu and the context menu respectively). So something is getting
through to the remote machine. But try typing anything in notepad or
any other place that needs text and you're out of luck. Interestingly
enough, the old version of RDC with the same server, works fine.

Any help would be greatly appreciated. I'm on OSX 10.4.10.

-Andrew