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Turn on the on-screen keyboard: (Start > All Programs > Accessories > Ease of Access > On Screen Keyboard)
If the key darkens when you press it on the keyboard then its physically working, if not, then it's not, then you know the problem is the actual keyboard, and not the driver or setting.
Also, go into your keyboard settings and make sure it is set to US layout, and if it is try changing it to US International or something else to see if that will work.