Is it possible, or would be possible with some work, to seperate Azeroth and Outland keys in Instance Keys? I liked the way that the old outland keys mod would show, to include how it showed for rep status and what not.

Yes, go into RosterCP->InstanceKeys->Categories

Under "Key Categories", add 2 new categories "Azeroth" "Outland"
Under "Key Category Assignments", set desired keys to each category

When you view the InstaceKeys addon, there will be 2 new buttons in the menu
The first is the default view, the 2 new buttons correspond to the new categories you made

The menu button images cannot be changed at the moment, unless you edit the database manually, but the ability to edit the button image used will be in a future version

ok, i thought thats what that did, but never saw any documentation on it and the last time i tried it a few builds back it didnt seem to work right.

Once i set that up is it possible to set a default view?

No, but it is a good idea for a new feature

"Default Category"

Ok, after playing with it, it looks good to me.
However, I did like how KeyBC would show rep as progress instead of just showing it as half done all the time.

Also, it may just be me, but I dont know what half of the abbreviations are; I liked how in KeyBC it showed the full name of the instance on mouse over.

I know that you guys didn't write KeyBC but it seems that it may have stopped development.

Keys uses the memberslist library to generate the table and it doesn't support tooltips in the header row

At least not yet