Drlee: what is the "it" that you tested? Adding a second LED to the keyboard won't help: it isn't the distance, it's the angle. The other things you mention seem to boil down to turning the IR keyboard into a cord keyboard.
The AC-IRU1 works, but inconsistently. For reasons I don't understand when the WP is rebooted the AC-IRU1 is no longer recognized. MS chalks up this problem to old drivers (unlikely, none are needed) or an old BIOS (could be). Particularly frustrating is the fact that the AC unit works perfectly in DOS or Windows Safe mode if USB legacy is enabled in the BIOS, but the unit continues to fail in Windows virtual mode.
I've noticed that when the unit isn't recognized at bootup I can "remind" windows by reaching around the back and removing and re-inserting the USB plug once or twice. This is really inelegant, but since I rarely reboot the machine (esp. since I've moved to 128 Mb of RAM) it will do.
I also finally gave in and followed zmoz's suggestion, masking part of the AC unit with a small piece of black electrical tape.