FYI This is not a mouse hardware issue.

PROBLEM Description:
Multiple Users on our domain are complaining that after they logout or switch to a new user the mouse becomes disabled and the mouse arrow centers in the middle of the screen. They then must either restart the machine using the power button or by unplugging and then replugging in the mouse. The keyboard does not become disabled.
Mouse Specific Problem = No. We checked the mouse in question. We take the mouse to a new machine on the domain, but not on the same subnet and test the process and cannot reproduce. We have used both ball and optical mice on this system and the problem reproduces.
Mouse Detection Error = No. Mouse is detected in device manager and no errors or unknowns reported.
Port Specific Problem = No. We checked ports to see if the error produces itself when plugged in other USB ports. The error does reproduce.
PC Specific Problem = No. We physically took the machine in question with monitor, keyboard, mouse, and cables back to our central location on a different subnet. Using the users login and password we cannot reproduce the problem. After giving the user a new machine with a new image the problem reproduces itself at the location. Problem is also occurring independent of the Dell model used.
User specific Problem = No. Many users on the same subnet are experiencing the problem, yet not all users experiencing the problem or at least are not reporting the problem.
Network-wide Problem=No. Most SUBNETS on the domain are not experiencing the problem. Problem is currently isolated to two different subnets in two separate geographic locations.
Group Policy Problem = Do not believe so. We have delved into our group policies line by line to see if there were any associated keys or policies that may be affecting the mouse or power to the USB. We have not found any policy pointing to this.
Steps to reproduce:
1.Computer boots and comes to Network Logon.
2.User Pressed CTRL-ALT-DEL and enters logon information and hits enter.
3.System loads users profile with folder redirection enabled.
4.User logs off or switches user.
5.Monitor blanks and then comes to Network logon.
6.User Presses CTRL-ALT-DEL.

Mouse arrow is now centered at logon screen and does not move.

Possible Causes:We believe that there must be some issue in either power management configuration or with the HIDUSB.sys driver causing the issue. Since the issue is only located on certain subnets we thought that a group policy that is being distributed may be the issue, but since it is not affecting everyone on the subnet we are leery to take the local server down or redo all of our group policies and containers yet. Also if the COMPUTERS are taken out of the OU the problem

Recent Attempts to FixWe have attempted all the fixes suggested in the articles http://windows7themes.net/mouse-not-working-after-hibernation.html, http://support.microsoft.com/kb/930091, http://www.prevx.com/blog/140/Black-Screen-woes-could-affect-millions-on-Windows--Vista-and-XP.html , and http://www.vistaheads.com/forums/microsoft-public-fr-windows-vista-general/460788-vista-usb-mouse-freezes-fix-windows-7-a.html, yet the problem still persists.
We have a checked EVENT viewer and checked for errors, ran a logman trace on the USB, and ran Perfomance Analyzer with rebootcycle traces. We cannot find anything that points to the issue.
Is there a USB trace that can be performed using xbootmgr,logman or some other utlitity that can capture what is occuring only after a domain user logs off and a new/same user logs back in? Or does anyone have any other suggestions?
Have all these systems been built from the same image, such as Ghost or RIS etc to where they all could have inherritted a problem with a build?

I had a problem a while back with multiple workstations and in the end found out that the image had a flaw with USB devices where External Drives and devices would go out to lunch. They would be connected physically but the systems wouldnt see them there. Unplugging the devices and plugging them back in caused these devices to become detected and work again. I created a new image from clean build and pushed that image out to workstations and the problem was solved. This was found when taking a stab at this where all other possibilities of what it could be failed. The last thing in common between all systems was that they all were built from the same image. Created new image, and then imaged the systems off of that and the problem was solved. Nothing on Google pointed to a cause/solution like this with a bad image.

This problem was related to the 10 MINUTE count down to screen saver which would lock the computer. Upon unlocking by keyboard, the mouse and all other USB devices would lose connectivity. We couldnt just disable the screensaver with timed lock, because we couldnt chance a computer idle with say a customer etc sneaking in and snooping away at a work station. As funny as it may sound we actually had a customer one day at the cooperative food store make themselves at home behind service desk to surf the web looking for a recipe for a dinner. This person thought I guess that since they were a member with shares that they were entitled to corportate network access.