To get past the locked out via password issue, try turning off the laptop and connecting an external keyboard via USB. Then once you have gotten into windows do the following.
1. Uninstall the keyboard driver.
2. Restart the computer, yes without reinstalling the driver.
3. When the computer reloads, it should reinstall the driver on its own.
Once it is fully loaded, shut it down and remove the external keyboard. Then start it back up again and see if it works.
NOTE: I do mean shut it down, not sleep or hibernate.