Mouse pointer problem

I am using Windows 7 on my Dell and my mouse pointer has all of a sudden turned to a precision select pointer (four arrow heads). Whenever I change it back to a normal pointer by going into the mouse pointer properties it lasts less than a minute then it chages back to the precision select pointer. I noticed that whenever i press a key on the keyboard the pointer changes to a normal pointer but as soon as i stop pressing the key it changes back to the precision selct pointer.

Also, I am using an external mouse hooked up to the USB port and i noticed that the touch pad does not work anymore now, whether or not the mouse is plugged in or not.

Any help would be great!!!

Thanks