In terms of the controller replacement mod, I've made a little bit more progress. I got everything wired up to the teensy.
Then I tested each key with my little arduino matrix testing sketch. All keys registered so I feel pretty good at this point.
Now for making it NKRO, I did a small trial run cutting the traces between switches. Luckily because of the simple matrix design, this was fairly straightforward. Here's one of the chopped traces (used a blade):
I cut four of the traces and soldered diodes to bridge those gaps. Here's a photo of that (please excuse my sloppy handywork):
I retested with my sketch and everything continues to work so I'll do the remainder of the board sometime when I have time.
Big thank you to Quartz64 for sharing
his Magnavox VideoWriter NKRO mod. Retrofitting diodes onto a keyboard is something that never even crossed my mind and seeing someone else pull it off successfully gave me more confidence to try this out.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
I also have some potentially exciting news in regards to the native conversion. I've decided to continue working on that. I'll explain why later (hopefully sometime today). I'm really hoping that this new development opens the door to decoding the protocol. What I'll say for now is that I do have another one of these keyboards (one that has not modified in any way

).
As a side note (and as previously mentioned by Sangdrax above), the technical guide says that this keyboard indeed does support NKRO. Does anyone have an idea of how they achieved that without diodes? I mean in layman's terms; I'm too dumb to understand the documented explanation.