Click and Drag/Copy and Paste will not work

Greetings-

Yesterday, I went to install a typical Mac OS update using software updater only this time when it completed my click-drag and copy-paste functions stopped working. Can anyone help me solve this? Here is what I have tried... restarted (multiple times), tried booting up in Safe Mode (by pressing shift when starting up), and repaired disk permissions using disk utility. I even ran all of the daily, weekly and monthly scripts using Cocktail. I'm stumped. Any suggestions?

Thanks,

Kevin

Update: Problem Continues

I just tried creating a new user profile to see if the problem happens in the new profile and unfortunately it did. The problem still isn't fixed.