I'm looking for a Free Keylogger, obviously... I'm going to be using it to defend a Network me and two team mates setup for a High School competition where we protect it from Proffesional and College pen testers, being more of a pen tester than a defender I personally prefer an offensive defensive but I really don't use many keyloggers, but I ws thinking if I could use some sort of Real Time keylogger so my Team can know whats coming, I will be using a Live CD of Backtrack 4 and some virtual machines filled with honey pots to defend myself... So basically what I'm asking for is:

A Free Real Time Keylogger I can insert into their systems Remotely and possibly use with Backtrack 4.

I am not sure if I understood you correctly, but Metasploit comes with a vnc payload which allows you to monitor another machine once you succeeded with the injection. Otherwise most of the better trojans should be able to do what you want. The harder part will probably to get it through there though.

I second what unsupported said.  I am almost sure that Snort's default configuration on Linux will do a small packet capture every time something triggers an alert.   Snort can also function as an IPS, simply severing the connection.

That's like a needle in a haystack.  I'd also recommend Wireshark for a more user friendly and protocol aware application.

Netwitness is another great network analysis tool.   It handles large packet capture better and has more sophisticated packet dissection tools.