Issues with mouse in internet recovery mode on iMac

I found my iMac with the folder and a question mark. I turned it off then booted it up while pressing cmd and r at the same time.

when I get to the select network page my mouse and keyboard are working fine.

then I fix the hard drive with the disk utility tool

I then try and reinstall Mac osx because the computer seems to have disconnected from he internet and I don't know where to go to log it on. So I start the process again by turning the computer on and off. But this time the mouse behaves in an odd way. the globe spins intermittently and the mouse which is plugged in to the iMac moves only when the globe moves for a millisecond.

the only way it works again is to wait overnight and then I only have one bite of the cherry before the Mouse freezes up again

Anyone else with this problem and how did you fix it?