For others who (very reasonably) go straight to the end of this wall of replies I'm reposting a link to my article from last year
Thanks!
I was talking to a colleague in work this morning and some of what's in your article, especially the bits about Microsoft dragging their feet on certain fixes, and how turning useful things off when they start acting strangely isn't really a solution, could
have come straight from our conversation.
I'm currently in the position you were, in that I don't need the Keyboard & Mouse Centre aka Intellitype / Intellipoint to be running so I've simply uninstalled it. But I will bookmark your site should I ever come across an essential program that also causes
this issue.
What amazes me is that I've been using Windows 7 since the earliest beta in combination with countless other programs, on various 32- and 64-bit machines, with and without Intellipoint or its descendants, and this is the first time I've come across this
bug. I can only assume, as you point out, that one of the more recent IE updates had pushed it to the fore ready for the ipoint.exe from Windows Update to trigger it earlier this week.
All part of the joy of being a Windows user I guess.