Windows hangs - hardware malfunction or can be fixed?

This related question to
http://www.experts-exchange.com/OS/Microsoft_Operating_Systems/Windows/XP/Q_25011322.html

I have an old Acer Aspire 1640 laptop, with freshly restored from backup windows partition. No viruses, no any unusual programs installed.
The problem as the follows: When windows XP Home boots in normal mode it does not respond on mouse/keyboard events, and I have to remove the battery to reboot the machine.
But in the Safe mode windows boots fine, I opened the event log and noticed a record dated the last fail - the SENS (System Event Notification) service hung.
I tried to disable the service, it did not help. I tried to reinstall Windows, the installer behaves same way.
But any Linux live CD I tried boots and works without any problem.

My questions: Could this be a hardware problem (the interrupt controller or something malfunction)?
Can windows be fixed/patched/reconfigured to work with it? What else can I do?
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zc2Asked:
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optomaCommented:
Apologies on that.
Dunno why but the way the question is posted here, triggered- "remove the battery"!
And looking back you did mention it in the other thread :(

Found a thread which is worth the read
http://www.techsupportforum.com/hardware-support/laptop-support/224642-acer-aspire-keyboard-touchpad-failure-when-running-battery.html

If you could borrow another battery of same model/type to test in laptop would be ideal troubleshooting for this!
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optomaCommented:
Hi again,
Just thought>
Have you tried the laptop in normal mode with battery removed completely, just running from mains?
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vAdminCommented:
This problem is definetely not relates to hardware, there is an aplication or driver that is causing this behavior. That id obvious because you can boot and work fine with a Linux live cd. You should try to disable any applications that are booting up.
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zc2Author Commented:
That was a great idea!
I removed the battery and the windows started to work normally
I wonder, how the keyboard/mouse behavior and the battery can be connected???
So pity you did not suggest that before I restored windows from the backup.
And most important, what should I do now. Leave the laptop without the battery?
That's not much convenient...
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zc2Author Commented:
I disabled the ACPI driver as was suggested an now windows works even with the battery attached.
I mentioned in the related thread that "I removed the battery", but I always put it back. after.
Why I did that? damn, I'm so stupid. :(
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optomaCommented:
Sometimes we all can overlook something. Like I said about your previous thread!

I suppose with the machine restored it gave it a "Spring clean"!
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zc2Author Commented:
Thank you much!
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optomaCommented:
You're welcome.
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