keyboard stops responding

I might be the mouse--try a different mouse, same style PS2 of USB. If it wireless it might be the battery, have you rebooted lately? Make sure the mouse connection is secure.

I have had problem with wireless mice--- Thats why I wont use them --try another mouse to make sure its not in the computer try a USB or PS2 install it and reboot and see thats up.

"occasionally I lose the cursor and have to click the mouse on the screen or on the window I'm in to get it back"

This is not due to a bad mouse. He is talking about the cursor.

I also have this happening when I have a lot running ie. Outlook & several other running in the background. Usually after I hit return & Avast is getting the latest virus definitions. It never bothered me enough to worry about it.

You're both right in a way.  The cursor quits "blinking" in the middle of any program I type in, email, word, works, etc.  There is no recognizable pattern.  Sometimes it happens only with word open.  Sometimes I'll have more than 1 program open and it won't happen.  It is very annoying.  Sometimes I can't finish a word without it happening.  Sometimes I can type forever and it won't happen.  I believe it is some kind of communication problem with the wireless mouse, not the keyboard.  If Microsoft's mouse does this, then what is a good wireless mouse that won't?

Logitech seems to get the best reviews--My son has a logitech mouse and keyboard and loves it, never a problem I have one and its sitting here on a shelf.---- Myself I do a lot of highend gaming and a USB 2.0 wired mouse and keyboard fits my bill--