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Kevin Flynn was raised by two healthy adjusted individuals in a suburb. This means quite a lot in the grand scheme of things. Other kids at school developed problems, got into fights, and caused mayhem and mischief. Kevin only engaged in average teenage delinquent activities. He was caught drinking, he smoked a little pot in college, but he didn't steal or break into homes. He had a loving and wonderful family who looked out for him and taught him how to survive on his own.
A major influence on Kevin's personality is that normal environment. He was an incredibly intelligent individual who lived a very ordinary life. Inhibited by a sense of morals and ethics, he resolved to dream bigger dreams and make his own world grow to some place where he would feel accepted and entertained.
It is worth noting that he does have a sense of morals and ethics however. His intelligence means that he sees the standard set of human ethics and codes of behavior differently. For example, while someone might think, "This computer is private" someone else might recognize, "Well, why is it private if it's public information? NASA belongs to the people of the United States right?"
This only applies to computers and other technology. While he sees common human morals and ethics differently, he thrives in the company of others. Kevin's parents encouraged his creativity and his desire to build other worlds for himself, but they built a bridge of trust with him very early on. He knew that he could always come to them and that they would offer advice which he could use. He thrived on their company, and so seeks out others to replicate that feeling of belonging and trust.
The unusual way of looking at the world just means he ends up being the unique friend in the group. That contributes to his fun-loving personality. He sees the world in terms of "Why so serious?" because he knows that he can bend it and shape it to his will-both in the real world and on the gaming grid. He can shape the world to his will by designing programs that will help people and assist in their daily activities. His programs make the world better, therefore changing it's scope. He knows (and confirms) that he can shape the digital world simply by being a user and by using the innate power of creativity that he-and all humans-possess.
While other people might feel a rush of power and ego, Kevin is filled with compassion. He can shape his own world in many different ways, but the bridge of love and trust means that he feels responsible for the things he creates. He has built a new world and knows that he needs to come to care for it. He is an explorer, but he has a solid foundation. The world is a fundamentally good place and other people should get to experience that.
At this early point in his life, it's feelings like that which contribute to his over-protectiveness and hot headed behavior. He cares very deeply for his projects. In his view of the world, he sees them as extensions of himself. It comes from being very intelligent and being taught compassion and trust.
He doesn't like it when things don't go his way or people and things he cares about are hurt. While seeing the world differently means that he can think outside the box-it also means that he does not respond to situations in commonly accepted ways. He can be rash and impulsive, and he will not hesitate to abuse his skills in computer programming to strike back. His motives however, based in childhood, will always be for the greater good. He sees the world in an unusual way-that anything is and can be possible. A cause which is ultimately worth fighting for.
Abilities In canon, Kevin isn't actually referred to as a genius but several characters infer that he has above average intelligence. He graduated from CalTech university and is apparently the most talented programmer at ENCOM. He is also the youngest. He can write programs and navigate most systems-a skill that he doesn't let go to waste. The biggest difference between him and Ed Dillinger, his foil in the movie, is that Dillinger lacks imagination. Imagination is Kevin's biggest strength and his greatest ability. It is what will assist him with being a warden and it is what makes him a good programmer.
He is unnaturally good at games of any sort. He knows how to talk to the Master Control Program, which means he knows how to play some chess. It is shown that he has the high score in Space Paranoids and Light Cycles. He spends all of his time in an arcade, so he has had ample opportunity to practice his skills. Because of this, he has excellent hand-eye coordination and very fast reflexes which can prove useful in the modern world and contribute to any fights he'd get into.