Pressing Backspace while editing text produces a square box character instead of backspacing.
Problems with PageUp/PageDown may also be noted.
Solution
As reported by a visitor to the PowerPoint newsgroup:
"We think we have the answer. It requires upgrading to Windows XP SP1 and then applying the 821432 hotfix patch (SP1 is pre-requisite before applying the hotfix). The hotfix updates the WIN32K.SYS driver."