You can start all over again and reload the OS, drivers, updates, etc.. and see if that clears any so-called s/w issues.
However, I suspect this is a true h/w issue. One that can from poorly designed USB ports. The USB is prone to power issues as in lacking. USB devices that get their power from the USB port can be demanding and exceed what the system provides. One cure is to use dual connection dongle or use a USB device getting power via AC outlet. When your USB mouse freezes it actually lost its power or enough of it. Older PC's had USB issues, if this is a USB1.1 type, suspect that as well. You're best bet is to get an USB expansion card, and use their ports. Refrain from using hi-power USB devices on older system ports.
If this is an OEM type system like Compaq, Dell, etc., find what if any resolutions they provide under their support website or FAQ.
I was recently given an old PC and checked to see if it had any faults. I then found out that as soon I plugged a USB flash or a usb external Hdd to it , it would cause a problem. XP pro came up with this message
"Power Surge on Hub Port: A USB Device has exceeded the power limits of its hub port."
It has 2 usb ports at the front and 4 at the back.
I tried all, but noticed when I plugged usb storage devices in the back, the pc would re-boot itself ,so the ports on the back were in worse condition than the ones on the front.
Also the mouse would freeze when I plugged storage devices in the front. However usb mice and keyboards work OK in all the USB ports.
Would this be a hardware issue ? not software related ?
Also I noticed the pc has a program installed in it called "S3 USB enable" ,could that be the problem that is causing this ?
My mouse pointer works again when there are no other usb devices plugged in and I unplug/plug the
mouse cable again.
How do I get the USB ports to function with USB drives ?