Problem: Whenever desktop goes into Screen Saver mode - or Hibernation - with and w/out Hibernation and/or Screen Saver options are enabled, once the keyboard or mouse is moved, active desktop will appear again, but will be frozen seconds after appearing. I HAVE to physically turn off tower and restart to re-gain input control. I have tested with and w/out screen saver enabled. I have tested with and w/out Hibernation enabled. I have tested with and w/out wireless input devices. I have done research, but the solution alludes me as of yet.

Hi,When did this issue first occur? Have it ever worked before?What is the model of your display card? Make sure you have the latest update and the latest driver installed.I will suggest testing the issue in clean boot first.This method will help us determine if this issue is caused by a loading program or service. Refer to http://support.microsoft.com/kb/929135===============1. Click the Start Button and type "msconfig" (without quotation marks) in the Search Box and press Enter.2. Click Continue to verify the permission.3. Select the Services tab in the open window. Check the “Hide all Microsoft Services” option and click Disable All.4. Switch to the Startup tab and click Disable All.5. Click OK to save the settings and select Restart when prompted.6. Check whether or not the issue still occurs. Note: Temporarily disabling the Startup Group only prevents the startup programs from loading at startup. This shouldn't adversely affect the system or other programs. We can still manually run these programs later.

Hi Whiskey,Before going further, I would like to suggest you visiting the following KBs. It seems describing the same issue with yours.A computer that is running Windows 7 appears to sleep, but then it immediately wakesThe computer stops responding when an USB device resumes from the USB Selective Suspend state in Windows 7 or in Windows Server 2008 R2Windows 7 does not go to sleepBest RegardsDale