Yes you should enter your password and then your system (normally) should display the System recovery options. (The language box is displayed only in systems with more than one languages specified to it).

Hello Bob. If you still not have found a PS2 Keyboard, then try this: Power off your computer by holding down (continuously) the power button when it loads Windows. Then turn on your computer and should be go to "Repair Options" (repair your computer). Then try to repair it using system restore options.

Thanks a lot, but that's not the problem. It's a desktop, so there are arrows independent from the Numlock key. I read in some forums that this virus blocks all USB ports (obviously my keyboard is attached like that) and only the old keyboards work. I have no idea is this is true but started askind around if anyone has an old keyboard. Let me know if you have some better idea. I have Windows 7. thanks in advance!

Try to check the "NumLock" key status. If "Numlock" is "ON" you cannot use arrow keys. Press once your "Numlock" key and then try again.
If the problem persists please inform me what type of computer you have (Desktop or Laptop) and the Operating system installed on it.
Also in some laptops you must press "FN" (Function key) first while pressing arrows.
Good luck!