ok this had to do with out IOGEAR KVM switch. Model # GCS632U ( 
http://www.iogear.com/main.php?loc=product&Item=GCS632U  )
I've removeeeeeeeeee d it from the system annnnnnnnnnd plugged in the USB KB 
and mouse and they worked without fail.
I'll updaaaaaaaaet when I know   more

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USB Problem
https://launchpad.net/bugs/68280

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