I do know a fix for PB issues, in fact I posted it on the COD4 Central site the other day and it worked for another guy who was having problems.
1. Stop PB running with the task manager. Ctrl Alt Del.
2. Delete the PB file and reboot.
3. Download PB again and install.
4. Reboot again and hopefully that should fix your PB problem.
Let me know how you get on.
On the mouse problem, I would suggest updating your mouse drivers. Although it seems to be across the board for you so not sure that would work. Leave it with me for a few days and I will look into it for you mate.