Things like the SmartJoy FRAG are just for translating mouse movements and key presses into gamepad stick movements and button presses. They don't let you use a keyboard for inputting actual characters. The reason the arrow keys worked are because they're being converted to D-pad presses on the XBox side

You'll want to get (or make) a simple USB jack -> XBpx plug cable/adapter, and use a USB PC keyboard with it.