I am currently using the on screen keyboard which is a time waster! To give a better idea of the problem, here's an example; if wanted to write "hello im lost can you help me?" it would appear as... jhcel'l'o kim l'oswt cean you jhcel';p mce?

Do you use a login when you start the laptop?

Have you checked your keyboard settings. You never said what OS so I will give you a gerneic placement of this option:
Go to the Control Panel
Click on "Regional and Language Services"
Click on the "Languages" tab
Click on "Details"
Click on "Key Settings"
Select "Switch Between Input Languages" and click "Change Key Sequence"
Make sure all the boxes are unchecked.
Do the same thing with "Switch to... (Keyboard type)"
Click "OK"
Click "OK"
Click "Apply"
Click "Ok"
Reboot

If this doesn't work I would assume your keyboard is disabled.
I'm willing to bet you play games on your laptop? Either way do you have a FN(function) key?

Thanks very much it still didn't work though! My os is windows7 and yes I do have a fn key

And yes I play games, how is that relevant?