Do the keyboard LEDs light up briefly when powering up the motherboard? If not, check the keyboard fuse near the DIN connector (might look like a resistor instead of a fuse).

Yep the keyboard LEDs light up briefly but nothing further happens when I press any keys

Can you take some close-up pictures of the damage?

Not a terribly good image but you should more or less get the gist of what I am meaning from seeing the image.

Have you tried a different keyboard, perhaps?

By the way, just use isopropyl alcohol to clean the corrosion.

tried two different keyboards both with same result.
Guess I can go buy some isopropyl alcohol then will this do? http://www.isocol.com.au/

This looks fine.. although I'd prefer a regular bottle:
http://www.isocol.com.au/products/100-isopropyl-alcohol

Yeah that is what i was thinking, I went to two places and they had the normal isocol which is apparently only 64% and they didn't have better so hopefully I will go elsewhere and get 99%+ instead.

Or grab something like this from ebay

I usually use zippo type lighter fluid to clean misc stuff off boards and contacts and then use alcohol(regular rubbing is fine) to finish cleaning. If its hard to remove alcohol alone doesn't usually do the trick. I used to repair xbox 360's and it works well on corrosion and even thermal paste but won't harm board, plastic or metal bits.

Vinegar is a good idea, as the electrolyte in these batteries is alkaline. The weak acid will neutralize whatever alkaline is left, and residual acetic acid from the vinegar is light enough to evaporate. Then yes, non-polar solvent (zippo fluid == naptha ) from the hardware store to remove the green stuff, and a final rinse in denatured alcohol or 97-99% isopropanol. If the traces are OK, this should get your board into good condition.

It's going to be hard to clean that chip inside the socket though. You might have to desolder the chip and socket to give the board a really good cleaning. And there's still no guarantee that the traces haven't been damaged. Good luck!

Unless you are confident about de-soldering do that as a last resort. More bad than good can easily come of it. Especially with potentially damaged holes/pads/traces.

Even if I planned on desoldering to investigate in such cases I find better results by fluxing and heavily re-soldering it first.
Flux the hell out of it and just "re-solder" it as it sits after cleaning.Lots of flux will help prevent bridges and use a de soldering wick and magnifier to make sure none of the pins are bridged. I've found doing that can sometimes fix dodgy traces as the flux and solder will wick into damaged area and fix then holes,pads, or traces.
Just my 2 cents take it for what its worh

I know that some motherboards are just be picky by using some brands of keyboards.. Trying a other keyboard could solve the problem.

I think desoldering that IC might be beyond me as the solder points are very small but I can probably reheat them and cool them easily enough without making a mess.
Using just 100% isopropyl alcohol didn't really work for me, the green stuff just seemed to stay there.
Vinegar seemed to work ok though for removing green stuff. I think I removed most of it but I'll let it sit and get completely dry before trying anything with it.

So i cleaned up a bit more and noticed that there is not connectivity between the bottom of the board and the leg of the AMIKEY for every leg.
so I'm guessing some of the legs don't have good contact and so that is why the keyboard is not working, but I'm not sure how much I can do without soldering a new socket onto the board.
I think this would be beyond my soldering abilities maybe or maybe not, not sure Id rather find an easier solution to getting good contact then replacing the whole socket.

The real issue with replacing the socket would be resoldering the new socket and making sure not creating shorts with solder which is what would worry me.

Replacing the socket isnt very hard.. You only need to right tools for it.. Better go for a desoldergun.. And desolder every soldered point.. If you do it right, you can remove the old socket with ease..
Then put a new socket in with something under it so the socket cant fell out the board.. Then you only have to solder the corner spots.. Then remove that thing you placed under the board..
Then solder the other points and your finished.. Take your time for it, when you rush you maybe can damage the board.