Nope. The spacebar on the Pro Keyboard is fine.
Here's what happens.
On the Power Mac G3 (Rev 2), on the secondary IDE channel, the drive reports as a 7.5GB EIDE device. It's actually a 20GB drive. The manufacturer is reported as "Laxltr 30049H2 B" rather than Maxtor.
In the iMac that it was pulled from, it caused the IDE channel to not read. With it out, the iMac will boot from CD.