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tonyadamFlag for United States of America

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cursor highlighted selection freezes

Dell desktop with XP S2 with 3 GB RAM.  Mouse and KB are wireless.  System wired to LAN.  When attempting to select an option (for example: clicking on START to see available programs or options) and then moving the cursor to the program or option to select, the cursor highlights the options while crossing them.  However, on many occasions, as the cursor moves across an option, the hightlighted option will remain highlighted (frozen) after the cursor has moved away from it.  Neither left or right mouse button has yet been clicked.  The highlighted area will eventually release and the cursor agains appear to be normal.  What could be causing this strange behavior?  BTW....it does not seem to happen if the LAN cable is disconnected from the system.  The system has a 2.9 Ghz Intel processor and no other tasks are running other than normal services.  Thanks for your thoughts on this issue which is more irritating than a pure failure.
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Jackie Man
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Have not tried Safe Mode.  Will do.  I do know that even a wire mouse and KB cause the same problem so I think we discount this being related to the wireless mouse and KB.  How do you suggest I use MSCONFIG?  Should I discontinue all services and then bring them up one at a time?  That seems much too laborious since there are a large number of programs in MSCONFIG.
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We've decided to go to W7 in about a week.  If that doesn't fix the problem, then I think we can be assured that we have a hardware problem.  Regardless, I want to thank each of you for providing some excellent suggestions.  I particularly appreciated the detailed suggestions provided by "bitsbytesandmore". Thank you.