Vista - Pointer stopped working in Office 2007

The mouse pointer has stopped working with Office 2007 whenever I try to do something with it in the document. I can see the pointer, I can move the pointer, but I cannot highlight words, right or left click anything in the document. The pointer does work when I click on the menu though. I've tried ruinning Office Diagnostics and it reported no problems. I also installed Windows service pack 1 and tried to install Office service pack 3, but it said it was already installed. Office has also stopped working and restarts itself whenever I try to close office and save the files on the task pane to view later. This all happened overnigtnight while I had the computer on sleep mode. I am not sure what could have done this and I've restarted my computer and office many times and installed all of the recent updates for Vista.

Thanks