Cursor Hang while using web-browser

Ok did some googling and I'm not seeing this issue out there at all here is a diagnosis, hardware etc., anyone has any ideas lemme know!

Thanks!

I am experiencing cursor hang (ALWAYS while using a web browser (issue common and experienced using all of the following: IE8.xx?, Firefox 3.5.1, Safari v.???, Chrome 2.5??)

Cursor hangs while being moved across screen, no more keyboard support, pulling USB-connection and re-inserting causes Windows driver support installer to launch and successfully run, but functionality doesn't return. Only known solution seems to be hard-reset (holding power button on tower, until power is disabled)

Things I've noticed: downloads continue, graphically screen continues to render, music continues to play from iTunes.

I have reviewed the "Event Viewer" and found no specific errors except roughly around the time of the hang, Windows Problem Reporting is started, I went ahead and disabled it thinking it might be related or causing the hang after whatever exception is thrown, but the issue has persisted. I don't believe Problem Reporting is actually successfully completing as I am never notified.

Issue doesn't have a common website, but I'm thinking it might be related to a piece of code being digested from the browser window. Here is a hardware/software breakdown:

Software: Windows 7 RTM 64-bit (issues is common with hardware to all successive installs of RC that I have done 6900, 7100, etc.)
Some services: iTunes and the like, XAMPP Apache localhost and MySQL, MSSQL server

Hardware:
Dell Optiplex 320
Intel Pentium Dual E2160 @ 1.8x2 64-bit
2.00 GB RAM
On-mainboard graphics ATI x1300 express
PCI-e ATI x1550
Currently downloading and installing Catalyst 9.7 to see if an updated graphics driver will help!

Keyboard/moust Dell generic KB, Logictech mouse (updated driver for Windows 7?? I believe this should be installed with OS?)

Thanks for the advice, any questions let me know!

Pretty confident this is iTunes related:

Downgraded to 32-bit version and killed the associated services, but it hasn't stopped the problem! I'm pretty positive I"m running into it solely while playing back music...

Also listen to the end of a song -- meaning that I'm loading another from memory and realize that the HD does not continue running and graphics do stop at that point as well???

There's some issue with 32 bit browsers and Windows 7 64bit.

I've seen this issue report with Chrome and I've experienced it with both IE8 32 bit and Firefox 3.5.5 running on my Win 7 64 bit Ultimate install.

The 64 bit IE8 browser runs fine when the 32 bit versions are hung. But, without Adobe Flash support for 64 bit browsers available many websites have crippled content. That makes the 64 bit IE somewhat useless.

The only way I've found to clear the problem so far is to reboot the PC. Then, it's fine for a while but eventually the hang problem returns.

I do have iTunes installed, but it hasn't been running when I've encountered the hangs. I think the problem is with an underlying service, not the browser itself. The reason I say that is the when one browser is hung attempting to open the other one ends with a blank window and the spinning ring. That makes it likely that it's some shared object that's hanging.

I have a random problem similar to your's, but instead of being related to any browser, it most often occurs on reboot. Sometimes I can restore it using the connect buttons on the mouse and receiver (wireless Trackball), sometimes by reconnecting the receivers cord to the USB hub, and sometimes by doing an extra reboot. I have not found a method that always works each time.

EDIT: BTW, I use Opera, which is 32 bit, and have not seen it occur in relationship to it's operation...but then I haven't seen it occur with the use of any other browser.