Hmmm... Well,
This is a hoax that have been doing the rounds on the net for a while. The most obvious errors are that the device shown is not made to be connected to a laptop keyboard, this is meant to be connected between a normal PC keyboard and the keyboard port in a PC, normal PC keyboards have an internal microcontroller that handles the scanning of the keyboard and conversion of the information to a form suitable for transferring the data to a PC over a serial connection, as having a wire for each of the leads from the actual keyboard matrix to the PC would be rather inefficient. Laptop keyboards, how ever, will not use this approach, as the main board is already so close to the actual keyboard, a standard ribbon cable can be used, so in a laptop all the circuits involved in scanning the keyboard will be on the main board itself, so this device could not be used in the manner described. Also, this is a very unreliable way of doing this, it is far to easy for someone to remove or cripple the device, and it would not be able to log external PS2 or USB keyboards.
Now, when that is said, the device shown is a real keyboard logger,
keyghost sells loggers for connection between a keyboard and a PC, or even keyboards with built in loggers. And though this device does not have network capability, there is no reason that it would not be possible to build such a function into a computer that has such a logging feature. The problem is that there would just be too much data to monitor if you were to monitor all computers, all the time, so this feature would probably only be accessed if there is some ongoing investigation. Not that they could not be abused...
