Thanks again for the advice.
I am using the Lenovo ThinkPad X300 with an external Microsoft Mouse along with the Touchpad / Trackpoint activated.
- I tried looking for updated drivers for my USB controller as well as my touchpad / trackpoint....couldn't find any updated drivers
- My USB controllers are from Intel's ICH8 Family
- None of my other devices are affected....I do have an external harddisk and other devices on the USB hub. But then again, the problem happens even when I'm not connected to the hub
- Application-wise, I do have ZoneAlarm Pro and ESET NOD32 running
- Tried Bluetooth connection yesterday. It worked without a hitch...although, I would prefer to revert to USB