Every time I hold B (playing with a controller) nothing happens, edward sort of freezes for a bit, but he won't pick up the kegs. I've tried doing this with a mouse & keyboard, reloading the game etc... Still can't get passed this because of the bug.
When you say picking up the kegs. Do you mean physically picking them up and carrying them or the counter changing? Because in that quest you don't actually move them. All you so it hold the button and they disappear and you move on to the next. If that's not the case I am not sure. Maybe reset to the previous memory?
I've tried resetting the quest, I still run into the same problem, and it's the quest where you're making a fire ship with gunpowder and some pine stuff (can't remember what it was called), I've to steal 4 kegs from the british, but when it says "hold b" or "hold E" to steal, nothing happens, Edward just freezes until I release the button.
I can't for sure testify this for PC, but many players on the 360 have been having this issue. They recently released a console patch 1.02 that addressed this issue on the 360, perhaps you guys are due for a patch as well.
It is a well known bug for the consoles that was addressed in the last patch.
One does not simply pass through the Omega IV Relay - CouchCommandoIV
Did you turn off the HUD element that displays the "stealing progress" bar? It, along with other on-screen markers, is turned on/off by the setting called SSI or something. I have that turned off, so for this mission I thought something was wrong because holding the button a few seconds didn't work.
I turned the SSI stuff back on just to see what the on-screen prompt looked like, and it turned out it was actually working. It's just that it takes much longer than pickpocketing or looting corpses.