Apps lose focus after 5s. Can't type.

Thanks guys, I will check these once i get back home and will let you know what happens. :)

Ztruker said:

How does it behave if you boot to Safe Mode with Networking? If better then something is starting at boot that is causing the problem.

Advanced startup options - XP
Advanced startup options - Vista
Advanced startup options - Windows 7

Use msconfig to determine what is causing the problem

These are good tutorials on using msconfig in XP, Vista or Windows 7:
How to use msconfig in Windows XP
How to use msconfig in Windows Vista
How to use msconfig in Windows 7

Click on Start then Run, type msconfig and press Enter.
Click on the Startup tab, record what is currently starting then click the Disable All button.
Reboot and see if it runs better.
If yes then use msconfig to enable several items at a time till you find the culprit.

If no, start msconfig and click on the Services tab.
Check the Hide All Microsoft Services box, record what is currently starting then click the Disable All button.
Again, do a regular boot, see if it runs normal.
If yes then use msconfig to enable services till you find the culprit.

Once you've found the culprit, uninstall it or find out how to eliminate it from your system. Simply disabling it in msconfig is a temporary fix at best.
Enable everything else you disabled.

Thanks. Already did the msconfig tweaks. There were few programs to disable at first place as I regularly clean this part up.

Nothing worked. Finally reinstalled windows. The same problem resurfaced. This time it was PROBABLY after installing Unified Remote sever (a PC remote, Android phone). Removed the server and so far things are ok.

The Unified Server controls mouse, keyboard and other things, which connects the dots with the problem i had.

I'd been learning Windows Trace to see if we could pick up what's getting dispatched while you're typing in your main app. Getting close but the dispatcher events number in the 1000's in just a second so I hadn't learned how to get what I was after to see if it could help your situation.