Err this might sound like a stupid reply but i'm just going purely on what you've written.
Im pretty sure that you have to press the 'A' or 'B' keys (Or whichever keys you've assigned to them) to get dialogue to continue.
Have you tried that? Its just that you specificaly mention the Down & Enter keys but none others?
P.S Try checking the key configuration in one of the tab menus.


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