Cursor is not working properly

Hi Friends... i've been using a sony vaio laptop since 2 years with configuration :
processor : core i3 (2.26 GHz)
ram : 4Gb
OS : win 7 home premium 64 bit

It was working excellent till yesterday except the touchpad. The touchpad stopped working properly about 8 months ago. It was not a big matter to me as i only use USB mouse as pointing device. But yesterday i experianced a strange error. WHEN I START WINDOWS THE CURSOR AUTOMATICALLY SELECTS THE LAST ICON ON MY DESKTOP AND IT STRATS BLINKING.
EVEN WHEN I OPEN "MY COMPUTER" OR ANY FOLDER OR ANY DROP DOWN MENU,IT OPENS WITH THE LAST DRIVE/THE LAST FOLDER/THE LAST FILE PRESELECTED AND WHEN I CLICK ANY OTHER DRIVE OR FOLDER THE CURSOR ONLY OPENS THE LAST DRIVE/FOLDER/FILE.
WHICH MEANS I CAN'T USE MY COMPUTER AT ALL.But sometimes it works fine about 30 mins and then again the same problem begins. i did a factory reset,checked registry errors with "Reginout",Scanned with "Kaspersky internet security",reinstalled "Synaptic Device Driver"....
and tried to use another 2 mouse...
but nothing solves the problem... THIS PROBLEM IS BECOMING HEADACHE FOR ME... even i have to restart my laptop 5 times to get 30 mins of "working time" to type this post.... becouse WHEN I OPEN THE BROWSER,
THE SCROLLBAR AUTOMATICALLY GOES DOWN AND IF I TRy TO PULL IT UP, IT BLINKS AND WHEN I RELEASE.. IT AGAIN GOES TO THE SAME POSITITION... PLZ HELP ME OUT GUYS...

Hello SJG and welcome to Seven Forums.

Couple of things to try. For the touchpad:

Sony eSupport

For the cursor:

SONY Viao Erratic Cursor movements - Windows 7 and Vista - Viao VGN - Microsoft Answers

And in Device Managment if any other hardware has a driver problem:

Update a driver for hardware that isn't working properly

But one thing you said concerns me. You said you did a "factory reset". I'm guessing you mean you reset the Vaio to factory specifications by using Vaio Care and accessing the hidden recovery partition, or by using the recovery discs you should have made. If this is how you did the "factory reset" then any software problems should have been resolved. That might indicate a hardware problem.

Thank you marsmimar,

I checked the touch pad in vaio control center and it is enabled.
"Hide pointer when writing" is already selected and
when i tried to install pointing device driver it says it is up to date....



Pardon me for the mistake ! It should be "Factory Restore" and I did it with Recovery Discs.I am thinking the same way... It must be a hardware problem. But I want to add three more details about the problem....
1.The cursor dose not move to select the last icon on desktop or in any folder... it opens with the last item pre selected.
2.While booting... sometimes my laptop shows "Windows Boot Manager" and I have to press "Enter" to start Win 7
but sometimes it starts without showing the boot manager.
3.I've been using a usb keyboard named "Acer SK-9610"..... and just now I find a TEMPORARY SOLUTION...
when the problem starts first I try to select an another icon using my usb keyboard's arrow keys... it does not work...
BUT WHEN I PRESS THE ARROW KEYS OF MY LAPTOP'S INBUILT KEYBOARD... IT WORKS... IT SELECTS THE ICON I WANT.... and after that the problem also disappears for almost 2 hrs... and then I have to do the same to resolve it again...
Anyways I am going to Sony Service Center soon... and Thanks a lot again....