Rather than detecting the keylogger - they are probably detecting some of the keyboard handling routines (remember STA is a program that watches your typing and makes corrections on the fly).

Many other programs might also be detected as a keylogger - perhaps only because of the way they intercept and act on keypresses (programs that manage the clipboard, or programs that let you set global hot-keys are some examples).

The way these antivirus and spyware programs work - is like this: (analogy time).

Imagine a bad "book" - they pick out a sentence from the book so they can recognise that book if they ever come across it again... then the author uses that same sentence in another book - but this time it is a good and useful book. The fact that both books have the same sentence in them, doesn't mean the books are about the same thing.

So they probably used a snippet of code to handle keystrokes and the keyboard in both products. But one product can be used for nasty purposes (it can be useful also - but it has the ability to be abused).

STA has no reason to be doing any of the stealth email, ftp, screenshot monitoring stuff - it just wants to be able to watch the keyboard while you type so it can correct dumb tpyos. (well some of them). :P

I just did a spyware scan with Webroot Spy Sweeper, and apparently when I installed Smart Type Assistant, Blazing Tools Remote Keylogger and Website recorder. Does anyone know anything about this? If you want to check you can use this website http://www.webroot.com/land/installation_instructions.php to scan your system.

Edit--
I believe that the other programs may have been bundled with smart type assistant, because on the keylogger site it says:
"Our keylogger has unique remote installation feature. You can attach keylogger to any other program and send it by e-mail to install on the remote PC in the stealth mode. Then it will send keystrokes, screenshots and websites visited to you by e-mail or FTP. You don't have to worry about the firewall alerts - now our keylogger can be invisible for the firewall program. Our keylogger supports remote installation, update and removal - no physical access required!"