Bluetooth hangs, keyboard disconnects

Dell E6400
Windows 7 x64 7229
Dell Bluetooth 370

I connect up a Bluetooth mouse and keyboard and the mouse works fine but as soon as I hook up a keyboard there is a strange hanging issue.

I will type something on the keyboard and when I go to use the mouse it will take anywhere from 1 to 2 seconds for the mouse to move. The same thing then goes for the keyboard if I go to type something. It will take 1 to 2 seconds for anything to show up on the screen after I go from mouse to keyboard.

A good chunk of the time the keyboard will not work and I have to re-pair it.

Using the latest Bluetooth Vista driver.

For whatever reason without the Dell drivers, the Bluetooth will not even show up in Device Manager.

I was able to find a little newer version and will test that out when I get to my office. Also going to try a different BT mouse. I did notice the newer driver pack helped with some standby issues.