I had some strange issues on my laptop with Visual Studio 2005 - the delete and return keys didn't work, which made it somewhat tricky to write code. I even resorted to copy and pasting a new line when writing code, which as you can imagine wasn't very productive.
After much investigation, I solved the problem. I believe it started because I had previously installed an early beta of Visual C# Express, and there were still registry entries and Application Data left over even though I'd uninstalled. What this meant was I couldn't save any VS2005 settings, and this in turn was causing the editor problems.
My solution was:
Other people appear to have had the same problem, but caused by something to do with Auto-hiding of windows capturing the focus when it shouldn't.
Some useful links that might help you if you're experiencing this: