HELP! Try to set up bluetooth using a D-link 120 on a Dual 1.8 G5

I have just got a Apple bluetooth keyboard and am trying to pair it to my dual 1.8 G5 using a D-Link 120 USB adapter. I have search the forms for hours trying to see if I can find the answer with no luck...
Here is what seems to be taking place.
Plug in D-link 120 USB Adapter, power on keyboard, open bluetooth setting set-up assistant, select keyboard as my device, it shows that it sees the Apple keyboard and I click continue, gives me a passkey number to type in and hit return and say it should pair but after 45-sec. I get "Pairing attempt unsuccessful"... what could I be doing wrong?
I am new to bluetooth and my goal is after pairing it to the D-Link 120 adapter I will move the D-link to my IOGEAR KVMP switch and plug it into the USB port where the keyboard plugs into so I can use it with both my Macs (this G5 and a new Mini i have connected to the KVMP... if possible?)
I understand that I might not get it to work with my KVMP (I have read that others have used this adapter with a KVMP) but right now I cannot even get it to work with my G5 like it says it can?
Any assistance that I can get with this would be helpful! please keep in mind that i am new to bluetooth so please try and keep an possible solutions low-tech.

i steered away from the USB adapters for bluetooth... i tried one from best buy that was 1/2 the $ of the d-link 120... had crazy problems happen?!?! i actually had USB components drop out on me! i use eyeTV and every time i tried to use the bluetooth it disappeared?!!? i assumed it was pulling too much power through the USB ports and subsequently the other devices got dropped due to lack of power...
i was told the d-link was the best one for our macs, but i never tried it again... i want to get an airport card with the bluetooth adapter on it... you can find them on line and peeps in these forums have posted links for them (can't remember where at the moment).
japamac uses it and has no problems... maybe he can chime in and help!
SITE FOR COMBO CARD
try that and look for your mac...

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