I wish there was a setting to turn off while using hardware keyboard. It makes my alt lock key inoperable on Droid2. Its buggy otherwise when using hardware keyboard
You are using the newest version, and not just the beta, right? Go to Settings> Language & Keyboard> Swiftkey settings> Input Settings and uncheck "Hard Keyboard".
I am using the newest version and have done what you say, still no go. My Alt Lock key on physical keyboard does not function when Swiftkey is selected.