Now that I've upgraded to Windows 7, there is a simpler way to install the keyboard and fonts for Windows 7.
Here is my LaoTravel's easy installation guide. I hope it helps all you learn to read and write Lao now!
1. Go to Control Panel
2. In the search bar in the top right corner, type in Font
3. Click on View Install Fonts
4. Down on the left bottom corner, click Text Services and Input Language
5. This opens a new window. To the left there is a button, Add. Click on this button
6. There will be a long list of different languages. Choose Lao (Lao P.D.R), then tick the box under Keyboard that says Lao

7. Now you will have two keyboard installed services. One is Lao (Lao PDR) and the other is the initially installed keyboard.
8. Don't close the window yet. Select the third tab Advanced Key Settings
9. Here you can choose to assing quick hot keys to switch keyboards. Click on Change Key Sequence. Here you can input your own hot key combination. Personally I select the Not Assigned option as I often use hotkeys for other functions. With the Not Assigned option selected, you simply switch between languages by clicking on the language icon which sits on the taskbar near the date and clock of Windows 7
Now that covers the keyboard install.
10. Installing fonts is even easier! Download the following fonts from my other post here
11. Go back to the Fonts window (it is the window that you are at after Step 3).
12. Simply copy the fonts that you downloaded from Step 10, and paste them into the fonts window (the one from Step 3). This will 'install' or place the new fonts into the fonts library.