Dell 1600SC DRAC3 no keyboard input with RHEL 5

[Beaver Beacon Mirror]

I just got a Dell 1600SC RHEL5 dual xeon 2.8 with a Dell DRAC III
remote access card.

In my 1600SC RHEL3 system this hardware combination works great, but
in the new RedHat Enterprise Linux 5 system the DRAC accepts no
keyboard input after RHEL5 loads, thus making it impossible to login
to the OS through the drac remote console redirect. Tech support
suggested it was because the RedHat Enterprise 5 kernel does not load
the PS/2 keyboard driver which is required for the Drac3 to accept
keyboard input.

At tech support's suggestion, I added
atkbd.set=2
to the /boot/grub/grub.conf file
rebooting had no change - still text input accepted to enter the bios,
but no text input to login to the OS or to select from the grub
interactive menu (which completely freezes the system and drops the
DRAC III console)
I also added
serial --unit=0 --speed=9600 -word=8 --parity=no --stop=1
terminal --timeout=2 serial console but still no luck - no keyboard
input accepted through the drac3 remote console to login to the os
through the drac console redirect.

Has anyone solved this hardware/software combination?

Or is RHEL5 simply not going to be backwards compatible with the Dell
DRAC3 hardware?

Any ideas, suggestions, or solutions would be greatly appreciated.