So I made it to Level 2 and went into the Skills list. After fumbling around I was able to figure out how to click on the header to allocate the points to the desired skills. The menu for Apply (or OK, not sure which) is greyed out and won't accept any input. This is the "E" key. I tried hitting the Key, Clicking on it with the mouse, and hitting the Enter key. None of that worked. 

Any help is appreciated.

I've encountered this too.  It seems that when alt-tabbing, the code to restore what 'mode' the keyboard should be in can get confused - so, I've been stuck in menus where ESC wouldn't let me exit out of repairing items, and things like that.  I was able to 'fix' it in those cases by hitting random keys to bring up other menus - which then resets which keys do what - but I could definitely see cases where that wouldn't work.   

They need to add code to remember what mode the keyboard is in better when restoring after an alt-tab.

I don't think that's what is happening here, but who knows...

I finally tried double clicking the "e" key and got it to work though so it's all good.

I'm sorry for the late reply, but thank you for letting us know you were able to get this issue resolved. In the future, if you encounter any issues, please visit http://privatedivision.com/support and they'll get you taken care. Thanks again for playing The Outer Worlds.