I mean, something clearly isn't working right there, and I can't think of many things that would cause that.
considers
The keyboard (and mouse?) do work in the BIOS, just not in the Windows installer? While plugged into the port in question? (I mean, it's possible to disconnect the cable running from the USB header on the motherboard to the front panel.)
Have you tried, while the PC is on and the Windows installer is active, unplugging the keyboard and mouse and then re-plugging them back in? That'll reset the device and let the installer handle them. It's not completely impossible, I guess, that the BIOS talking to them could somehow put them in some kind of wonky state.
EDIT: If the keyboard and mouse aren't working in the BIOS either, try them on someone else's computer to rule them out as a source of trouble? I doubt that they are the problem, but might as well get the data point, just to be sure.
