Try "Windows System Restore"

Assuming you have Windows 7:

Click the "Start" button and type "system restore"(without the quotes),hit ENTER and follow the instructions.You will be given a couple of "restore points".Choose a restore point which was created before you experienced the problem.

Windows System Restore will not delete your personal files/documents but you might have to reinstall  programs that you installed after the restore point was created(and which might have created the problem...)

For more info about Windows System Restore check Windows integrated "Help and Support section"

I am experiencing the same problem with my Dell laptop, starting happening around two weeks ago. It's incredably annoying, can't find any reason for it. Hope a solution is found soon.

Did a system restore as suggested by Microtest and it did fix the problem.  This lasted for about a week and now the keyboard delay for CapsLock has started to happen again.  I have done nothing other daily updates to my Norton 360 and the Windows 7 updates put out by Microsoft.   Anyone have other guesses as to what might be happening here.  More info:  My laptop is running Windows 7 Home Prof, with an Intel Core I7, and Norton 360 for defense.

Assuming that one of the windows or Norton updates are the cause for the problem try installing the updates manually

- it keeps you busy and spoils your weekend  ;-)

1.Disconnect your system temporarily from the internet(to avoid automatic updates)

2.Do the System Restore again and check if "caps lock" is ok

3.Click the "Start" button and type "windows update"(without the quotes),hit ENTER

4.Click the option "Change settings"

5.Under "Important updates" choose "Never check for updates" from the list

6.click OK ,close all windows and connect to the internet

7.Again: Click the "Start" button and type "windows update"

8.Choose "Check for updates for your computer"

9.After receiving update information you can select each available update manually.

  Install them step by step and after each update check "caps lock"

If all windows updates "pass the caps lock test" update Norton.......

Remember that windows updates are set to manual - don't forget to set it back to automatic if the above steps don't fix the problem.

It's a boring job but as long as nobody else comes up with a better idea it's worth trying it.......

This started happening to me about 10 days ago. This is BOGUS and Dell needs to fix it!!!