Hi OZgazza,
I appreciate the steps that you have tried to resolve the issue.
Does this issue occur when you launch a specific program or randomly?
**Method 1:**I would suggest you to perform the steps provided here and check the results.
a. Click on S tart.
b. On the search bar, type “Device Manager”.
c. Right click on your 'Mice and other pointing device'
d. Select Properties.
e. Click on Power Management.
f. Uncheck “Allow the device to turn off to save power setting” option.
g. Check the issue.
**Method 2:**Place the computer in clean boot state and check the results.
How to perform a clean boot to troubleshoot a problem in Windows Vista, Windows 7, or Windows 8
http://support.microsoft.com/kb/929135
Note: Once you are done with clean boot, please follow the section ‘How to reset the computer to start as usual after troubleshooting with clean boot’ under ‘more information’ in the article to put your computer back to normal startup.
**Method 3:**If the issue still persists, you may refer the steps mentioned in the article.
Troubleshoot response failures in wireless keyboard or mouse
http://support.microsoft.com/kb/838398/en-us
Hope this information helps. Reply with the status so that we could help you further.