Mouse Freeze

My computer is a one that i built, and for some reason the mouse keeps freezing.
comp specs:
AMD Athlon XP 2900+ W/ 400MHz FSB (On ASUS A7V600-X Motherboard)
-Motherboard pegs have electric tape between the board and the case to reduce emi
-Raid controllers are not in use
1024MB PC 3200 DDR ram 400MHz
AGP:
MAD DOG 64mb 8x graphics card
PCI:
USR56k modem
firewire card
USB 2.0 PORTS USED BY:
Digital camera, Axim X5, Creative Nomad Xtra, Wireless netword adapter, and a couple other things
Power Supply:
400W Coolmax PS
IDE:
80 gig hd 7200rpm
120 gig hd 7200 rpm
Sony DVD rom
Iomega 250MB zip drive.

Additional info:
Originally, i had a wireless keyboard and mouse hooked up to the computer, the problem started driving me nuts, so i hooked a wired keyboard and mouse. I found that the computer is still running, it is not frozen, i can use all the hot keys to get around the computer but the mouse is completely gone, until reboot. In games the mouse freezes but not as often and i can get out of the freeze. Sometimes the freeze is perminant and sometimes i can get out of it. I have contacted asus, the rep said try doing the electric tape to limiti emi and increase the power. I am ordering a 680W power supply. Also, the bios states that one of the hard drives are due to fail, but both hard drives are a 4 months old. And I have done a scan disk with error correction and nothing comes up. Does any one have ideas to solve these problems.