I have used keypass 1.5 for a while and it worked fine. I upgraded to 1.6 and when a web page opens the user name and password are not filled in. I then reloaded 1.5 and now cannot use it either because user name and password are not filled in. I have not updated IE.
Then it won't be a KeePass problem.
Does it work if you attempt to auto-type into Notepad?
Can you drag and drop into IE?
Can you copy and paste?