You were using the mouse keys to click...so the mouse was working OK ? What type of mouse ? USB, PS/2, Serial ...? Look in Control Panel>System>Hardware--for 'Pointing Device'. Is your mouse listed there ?
A friend of mine has a brand new PC, running windows XP home edition.
The computer seems to have lost all the information relating to the mouse. In the control panel whan I click on the mouse icon (using mouse keys to do the clicking) and try to trouble shoot the hardware, there is no hardware on the list to troubleshoot.
So I thought I would uninstall then reinstall the hardware from the add/remove hardware option, but the mouse does not appear on the list.
So I tried re-installing windows, not a full reinstall, just the "upgrade" option.
This still didn't fix it.