Tried New keybOard and relOaded Operating system
Boot from the install DVD. Go into Utilities. Go into Reset Password. Don't reset any passwords, just get into one of the screens where it lets you type things into a field. If the lower-case o doesn't work here, you have a keyboard hardware problem If it does:
Reboot normally, go into System Preferences / Accounts, and define a new temporary user account. Log out and log in as that user. See if the lower-case O works. If it does, you likely have a bad setting for keyboard type in System Preferences / International in your main user account.
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This is NOT a fix, but a possible work around. What happens when you use caps lock (both with and without shift)?
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