Windows 98

Not enough memory or too many programs running when you start up. You could also have a memory leak. (when a program keeps asking for memory and doesnt release any, basiclly a hog and no other progrmas can run.) This I've seen in older programs. Usethe command MSCONFIG at the start/run prompt. Try to turn off some programs and not let them boot and see if this makes the difference.

Applications lockup due to corrupt files lack of memory,bad Dll files,or to many apps opened at the same time and then their is the anti-virus is scanning applications in the background.
The mouse is not locking up because software is up to date orfiles not corrupt.

The mouse is in a different module in a different task. Windows taskswitches between tasks. That is why when you push CTRL-ALT-DEL you can kill one task.
(This is not as absolute as in a mainframe or UNIX/LINUX, but it is much better than DOS or Win3.1.)
A task usually has several modules in it.
In the "new lingo" the word "object" should be used.
Regards, Chris

Yo!
Here's my SWAG (scientific wise-ass guess) on this one. To my understanding a device like a mouse etc operates independent of the CPU since it has it's own controller chip. this suggests the reason why a program or application will crash or freeze but a mouse or similar pointing device will continue to function. I could have looked this up in my "mastering windows 98" book but I wanted to give you a quick response without the technical phraseology therein. I hope this helps.

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