You guys are stars, I have been utterly exasperated with the same problem, that also started exactly at the same time as I downloaded Mountain Lion. Mine didn't even rectify itself with the exit command, so have been unplugging the device and starting again, which I am sure isn't good for it. I'll now try not touching anything when I boot up, or reverting to USB based keyboard/mouse and see if it works. Will keep you posted, and keep glued to this thread to see if a patch becomes available. Thanks very much.