It isn't the mouse driver anyway. It has to do something with KMW_KBD.sys. When I uninstall the mouseworks driver it uninstalls this as well and I lose my keyboard. I cant install a usb keyboard or a ps2 keyboard they just wont work in the OS. Digging in the registry if I add back to all the ControlSets:
[HKEY_LOCAL_MACHINE\SYSTEM\ControlSet001\Services\KMW_KBD]
"Type"=dword:00000001
"Start"=dword:00000003
"ErrorControl"=dword:00000000
"ImagePath"=hex(2):53,00,79,00,73,00,74,00,65,00,6d,00,33,00,32,00,5c,00,44,00,\
52,00,49,00,56,00,45,00,52,00,53,00,5c,00,4b,00,4d,00,57,00,5f,00,4b,00,42,\
00,44,00,2e,00,73,00,79,00,73,00,00,00
"DisplayName"="Kensington Input Devices Class filter driver"
[HKEY_LOCAL_MACHINE\SYSTEM\ControlSet001\Services\KMW_KBD\Enum]
"0"="HID\\Vid_06a3&Pid_8000&MI_00\\7&12479a9e&1&0000"
"Count"=dword:00000001
"NextInstance"=dword:00000001
My keyboard comes back. I am thinking my Hive is messed up. And by the way dont be so testy.

Its all good.