Simply implement a "Browser helper object". There are examples in MSDN called IEHelper. You can control the IE (and also the windows explorer, active desktop) by invoking its methods (e.g. navigate, goback, goforward, ...) or asynchronously obtain the events from IE when the items on it are being clicked. Of course, you can access the DHTML model (e.g. any HTML elements on the page) and locate the cursor whenever you like. If you are familiar with javascript, that would be a big help in doing with dhtml too.

The 'other' keys, like arrows, alt, etc. all have VK codes, such as VK_LEFT and VK_ALT. I *suspect* you could add these values to the values of keys, that they each set a high bit. This is just a guess, but hopefully will put you on the right track.