Samy KamkarĀ has written an article detailing the build of hisĀ KeySweeper project:
KeySweeper is a stealthy Arduino-based device, camouflaged as a functioning USB wall charger, that wirelessly and passively sniffs, decrypts, logs and reports back (over GSM) all keystrokes from any Microsoft wireless keyboard in the vicinity.
All keystrokes are logged online and locally. SMS alerts are sent upon trigger words, usernames or URLs, exposing passwords. If unplugged, KeySweeper continues to operate using its internal battery and auto-recharges upon repowering. A web based tool allows live keystroke monitoring.
Files and source code available at Github.
Project info at Samy’s project site.

“the keystrokes are simply encrypted (xor’d) with the MAC address” – you’ve got to be kidding me!
Why do more? Anyone how wants to have a secure solution won’t go by air anyway.
And this is EXACTLY why wireless keyboards are banned at my company.