You mention the facts that you bought the keylogger from a 'local chinese pc shop' and the keylogger was 'in' the keyboard. This suggests that you believe the keyboard is the disease vector. I can't assess the likelihood of this, but if it's true about the keyboard, nothing you do to the Windows system will remove the problem if you then plug the same keyboard back in.
I highly doubt this, but ostensibly the keyboard vendor could include a keylogger inside the keyboard, basically wired through the USB interface. Basically taking a USB keylogger dongle and wiring it internally to the keyboard.
There are devices like this, think of one usb plug for multiple devices like a built-in hub. For example I have a single transceiver for a keyboard, and mouse while both show up as separate devices. The transceiver shows up as three devices, it also shows up as a bluetooth transceiver. The keyboard, and mouse work in the bios, along with installing operating systems without any software.
Now I'm not so sure the op's case is true, but it's possible. There's all sort of spy devices like this, and some keyloggers even plug in inline with your keyboard. Through the use of autoplay it's quite possible to include a usb drive/keylogger device, and when that gets launched it could even hide itself. If the person is already running as full admin I highly doubt your standard av solutions would catch it if it's done well. -- I distrust those people who know so well what god wants them to do because I notice it always coincides with their own desires- Susan B. Anthony Yesterday we obeyed kings, and bent our necks before emperors. But today we kneel only to the truth- Kahlil G.