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Thinkpad z60T weird mouse issue

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http://forums.opensuse.org – I installed both 11.1 and 11.2 to make sure it was not the OS version. On a vanilla install of either version when I go to for example "control panel" in gnome and scroll through then I can no longer click on anything. Mouse arrow moves but the "box" around the items in control panel is no longer there. If I left click on let's say power management, nothing happens, the box doesn't select it. If I alt-f4 I can close the window and then I can select and click again but then the same thing happens. Using a usb mouse has the same result. (Distributions)