Failure occurs only when I have unchecked "Users must enter a user name and password to use this computer". This allows me to automatically boot up to my user account. HOWEVER:
1. Now, when first boot to my desktop, I can click and open
multiple desktop windows or shortcuts. When I reselect one of the windows I have just opened, Boom!
2. Now, I cannot close the window(s) by clicking on the Close 'X' . The F4 key does not work either. I cannot drag the window around either. None of the desktop or tray items respond.
3. At this point, keyboard combinations such as Alt-Tab do function properly. Window Key - M does minimize, etc. and the mouse does move around.
4. I can recover from this problem mode if I click Win-L and reselect
my login icon. After that, everything runs as expected.
If I select "Users must enter a user name and password to use this computer" and restart, and then select my user from the user icons, everything works fine. Update(9/2/12)
If I remove all other users from computer so the logon process automatically goes to the last existing user, the login hangs, regardless of the state of the "Users must enter a user name and password to use this computer" check box.
The driver for my wireless Logitech mouse was the default Windows 7 driver. When I installed Logitech's Setpoint program, the problem went away. The Windows 7 driver just didn't do the job for some reason.
Need more details? I'm glad to provide them. I just didn't want to write a book.