We all know hardware keyboard loggers are possible. Now there is a
commercial product called KeyGhost: http://www.keyghost.com/

Here is an independant review: http://www.dansdata.com/keyghost.htm

Several forms are available or planned, each capable of storing 97k or
500k (Pro version) of keystrokes:

- Keyboard cable extension with a bump in the wire.

- PS2-to-AT / AT-to-PS2 adapter or cable extender with no visible bump
  in the wire. The hardware is concealed within the connecter.

- Regular computer keyboard or Microsoft Natural keyboard with the
  hardware concealed within the keyboard case.

500k is a lot of keystrokes. Forward-secret protocols won't help you if
the plaintexts of all your communications are recorded by one of these.

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