Thanks for trying to help guys.

But i think we got it!!

I'm in the middle of reloading update after update. We ended up taking it back to factory settings. While reinstalling the mouse froze, but not the computer. Changed the mouse over for another (one changed was exactly 3 weeks old grrrrr) have not had a freeze, slow up, etc since. Puter now comes out of screensaver and hibernation...wooohoooooo.

Still slightly noisy, but so far, its working! Fingers crossed.

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