Broti,
Thanks for the reply. No, unfortunately this isn't the case. I can reproduce the problem outside of Duck world simply by opening up the Run box and typing a typical command like: "powershell Start-Process notepad -Verb runAs"
When I press Enter, after a short moment, a DOS window pops up, followed immediately by the UAC dialog box pop-up, but it does not have focus. I believe the DOS box has focus. Pressing 'n' or any of the arrow keys does nothing. What I can do is Alt-Tab until I manually see the UAC dialog gets focus, then I can press 'y' or use the arrow keys, but without focus, I can't touch that dialog box. Because there is no reliable number of forward OR backwards Alt-Tab strokes that can always get the UAC popup to have focus, I can't think of a way to make this work.
Can't see what would be unusual about my Windows 7 configuration and why this doesn't seem to be a huge issue for everyone else? In the mean time, I can't think of a reliable work around. Have you heard of this before?
Thanks,
Steve