yes, but occasionally, IE tries to update itself as soon as the browser is opened. but that doesnt explain the mouse movement being stopped.
try the following:
1) Run a spyware scanner like 'spybot search and destroy' or 'Microsoft spyware scanner' (Possibly with latest updates)
2) Run a complete scan with a antivirus (again, possibly with latest updates)
3) Check if there is any unexplained or mysterious .dll files or such module is running in the background or begins to run when IE is opened. (You can use WINPATROL for this. the other features of this software is not so good)
4) Open 'control panel>>add/remove software' and see if any unknown or unauthorised program is installed. if exists, then uninstall it.
5) You can use System Mechaninc Pro for overall system maintenance and performance. (hey, i dont belong there and this aint no ad. just suggestion)
6) use software like 'DUMETER' or even the task manager (in windows XP) to see the networking data transfer usage as soon as you connect to internet to see if the bandwith is eaten into by any program
after all this if the problem persists, try reinstalling IE, and even then if it exists, try using other internet browsers, and even then if it exists..... phew.... guess i am helpless.