Well, solved it using another answer on SU. The problem had nothing to do in the end with the fact I am on an Toshiba Laptop , it stemmed from the fact that I had MotionJoy drivers installed for using a Playstation 3 controller over USB. That works fine, however, the MotionJoy driver package also contains drivers for internal and USB bluetooth dongles, and Windows randomly decided to use the MotionJoy drivers for my mouse and keyboards USB receiver.
I solved it by going to the Control Panel -> Devices and Printers. Under the 'Unknown Devices' heading there was the USB receiver/USB Mouse. Right click -> Properties -> Hardware -> Select HID Compliant Device -> Properties -> Under the General Tab, Change Settings -> Driver Tab, click Uninstall Driver, and check Delete this driver. Click OK, and restart the system.
Let me restate, this is only applicable if your USB mouse or keyboard is not working, and you have the MotionJoy drivers installed on your system. I didn't look for a workaround, because I do not use my PS3 controller on the computer anymore.
Source = Troubleshooting the Microsoft generic USB HID drivers