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Cannot drag and drop or move open windows

 I am running XP SP3 on a Toshiba laptop, 2.4 GHz, 2 GB memory.  Operation has been normal for years.  
  Suddenly I cannot left cliick and drag icons or windows. Icons cannot be moved at all.  Clicking on the top left icon on a window, then clicking move, does work. Windows can be resized.
  Also, I can highlight text in MS office applications but not on websites that normally allow it.  In fact, I cannot highlight text that I type into this input box right now.
  I have run exhaustive AV scans with several products including Rootkit detection and found nothing.  So, specifically no Blaster Worm or other malware I can discover
  I found a suggestion to try using dcomcnfg but those instructions did not work.
 Nothing new has been installed in several weeks except last patch Tuesday's  selection This just started yesterday so it has been almost three weeks since those patches were installed so I doubt that is the issue.
  I just discovered that I can highlight text using shift and the arrow keys so it is just limited to the mouse.
  I have the same problem using my wireless mouse, a wired mouse and the built-in laptop touch pad. Since highlighting does work in Word I can't believe it is the mouse or drivers.
  I have never seen this problem before though google searches show that a lot of people do experience the problem.

  Any ideas?
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moon_blue69

Hi

please do a system restore to the date when it it was working

all programs->accessories->system tools->system restore-> restore to an earlier date. find a bold date in which the system was working and restore it and let the system restart.
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Lukasz Chmielewski
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Your mouse may be set to click on exit instea of click on enter , a common option with touchscreens but not usually mice or trackpads. Anyway, the solution is to get the right drivers installed again. Get the touchpad drivers from toshiba and uninstall the "newer" ones I bet windows update installed for you.  Never let windows update update your touchpad drivers as this is a common occurrence.
Uninstall mouse drivers and reinstall the same!!! Also please don't update any drivers from internet. use the original one's that you get with you laptop from your vendor....