Well i've found out what the -10810 error is. It happens when you have runaway spawn processes. Apparently its often caused by having SMB sharing on, i've turned that off for testing now. Fingers crossed, not sure if this is related to the mouse issue.

Do any of you guys have SMB sharing turned on?

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 Mac OS X 10.6.4 Retail || Intel Core2 Duo E8200 2.66GHz || Gigabyte G31M-ES2L || GeForce 6600 GT 128MB || Realtek ALC883 Audio || Realtek RTL8169 LAN || Samsung SpinPoint F1 1TB HD || Sony Dual Layer IDE DVD RW DW-D22A || Apple Aluminium Keyboard || Mighty Mouse

 MacBook Pro || 2.4Ghz Core 2 Duo || 200Gb HD || 2Gb Ram || NVIDIA GeForce 8600M GT

 iPhone 4 || 16Gb