Galaxy Note 2 Tips & Tricks (Episode 5: Stop keyboard from popping up on Android)

*Update: This doesn't seem to work well with a Bluetooth keyboard because it is tied to Samsung keyboard.  Hopefully Samsung will address this annoying bug soon.  It may work for a little while, but then you may lose all Bluetooth functionality until you toggle on and off.  Still works well only with USB keyboard.

When you are using a USB keyboard, you don't want that keyboard popping up.  So the solution is to install the Null Keyboard app and enable it.  Don't forget to switch out of it when you no longer have the external keyboard connected.