Ok, think that fixed it. The details are:
The updated Xbox wireless control pad driver causes the bleeping/unuseable mouse problem after the dongle has been removed from the computer. This particularly affects laptop users as they tend to do that quite often and in my case the stupid dongle won't always link to the controller and I have to remove it and plug it back in again ( I have a desktop ).
I did three things:
Switched off all the sticky-keys options.
Re-installed the motherboards chipset drivers.
Rolled back the Xbox controller driver.
This seems to have fixed it, my hunch is that it was the xbox driver.