Ok I tried the accesibility functions and used the onscreen keyboard to log in. Once I logged in the everything was operating normally. So I completely disconnected and tried two other times. Both time the password text box worked properly.
Has anyone seen an error where when they try to log in to their Windows 7 machine via Remote Desktop the computer attaches and the mouse works but the textboxes don't accept the keyboard input? I'm attaching through the web interface on my Windows Home Server. (I've seen that several people...