I used 2 different keyboards and mouse. Sorry to keep things going but I ended up reinstalling windows from a usb drive and this seemed to work.
I was just getting frusterated, as I have never seen anything like this before and I had the customer hounding me on getting it fixed. The customer had already tried to restore the system from the restore from the restore partition. I'm thinking that something was wrong with that partition. The customer had a friend that had been in the IT department for 20+ years and was trying to tell them that the hard drive was bad. I did run test on the hard drive and everything
checked out just fine. I normally do not just rush in reinstalling windows like this as I like to find out what is going on so if I see this again I know what is going on. Thanks you for the help and ideas.