It is good only against hardware keyloggers... Pretty much any software keylogger on your machine would be able to intercept that as well.
No, I don't see how it could. Usually a hardware keylogger is connected between the keyboard and your computer, so there is no software that I'm aware of that can't detect a hardware keylogger. But there are very good virtual keyboards around. Some are so good I am not aware of any keylogger that can log your key strokes while your using it. Now, if your talking about the Windows on screen keyboard, then yes, just about any software keylogger around can intercept key strokes from that. But it was not designed with security in mind. Here's a very nice free virtual keyboard that's been talked about on this forum before. I am unaware of any hardware or software based keylogger at this time that can log your key strokes while using it. But don't assume it's completely unbeatable. http://www.aplin.com.au/?page_id=368 Here I have scanned it at VT: ~Link removed per Policy.~
Oops, I meant to say there is no software that I'm aware of that CAN detect a hardware keylogger. Sorry about that.
If I need to enter some code with 1000% care I am thinking about doing it this way. take 83522 for example . I would enter "123456789123456789 [backspace] [backspace] [backspace] [backspace] ..." using my mouse to adjust the input cursor position and remove the extra code complicated, hum? what would you get from the logger , 12345? PS: it is easy to intercept the global message. software keypad is not safer than the real one.
How about if the software keylogger you are trying to fool takes a screenshot every time you click with your mouse? At some point, it will have your code shown and easily understandable. Software keyloggers are extremely hard to defend against, so the best you can do is prevent them from getting on your system. Once they are there, it is only a matter of time.