Hardware anti-keylogger

I was talking to Grey McKenzie of SpyCop a few months back. He mentioned that they had an anti-keylogger hardware dongle coming up. Supposedly it works by scrambling the signals from the keyboard, and then a software running on the other end of the computer captures the input and transforms it back.

Has anyone heard anything about this, or seen anyone else do something like that?

I think he also mentioned something about a screen scrambler too! outrageous right? I wonder at what level does it do the scrambling.