I just came in off of a search engine, too. I had the same problem but I fixed it, sort of.
The problem for me was that I downloaded a bunch of optional updates from windows update, including one called "Ezkey Corp. - Input Devices - Office Keyboard". I just figured, oh what the hell, can't hurt.
Anyway, when you install it there will be a process called mmkeybd.exe in the task manager (ctrl-alt-delete) and also in the programs list as "Netropa something or other". If you look at the device manager (right click on My Computer -> Properties -> Hardware -> Device Manager), under "Keyboards" you will see your own keyboard plus something else called "Office Keyboard" or something like that.
I just tried random things. I rolled back the driver on "Office Keyboard", disabled mmkeybd.exe from the startup programs (in msconfig), I killed the task and then deleted mmkeybd.exe and mmkeybd.dll from C:\Windows.
There's probably a better way to do it but that's my attempt. I don't know if it will come back when I restart the computer. But, when I started Morrowing just now, I was able to use the tilde key to bring up the console. Try it out for yourself. Let me know if that was it!