Can the Keeper use the players skill points with this card? Or is the Keeper allowed to use the players skill points at all with any cards?

I think CbM makes the Keeper become an investigator player for the remainder of that investigator's turn, so he can do normal actions and spend skill points as he chooses.

What he really should do is this (only works with Objective 1B in scenario 5) :

www.boardgamegeek.com/thread/656353/what-happens-when-you-let-old-people-drive-green-e

Very evil! Grats!