The problem here, however, is not Remote Buddy, but Front Row.

Front Row does listen to key presses on the HID level, even before 
hot keys are sorted out. So, what will happen is that Front Row will 
react to any keypresses no matter whether they are hotkeys or not - 
which then leads to the observed result. :-(

There's little I can do about this, I fear (except writing a driver 
for the PowerMate - it'll have to wait, though, until I have finished 
some other driver projects I'm working on).

Best regards, 
Felix