Controller to M/Keyboard issue with menu's.

I'm having a problem with navigating menus while in mouse and keyboard mode.

I Started playing the game with a controller but couldn't get on with it (too many years of MMO's with a mouse and keyboard). I switched to mouse and keyboard (and the mode in settings) but when I try to navigate the menus the hand cursor that the controller uses comes up and prevents me from selecting anything at all, this includes the escape menu, and the lower right icons for shortcuts to menus. It blinks rapidly when I try to select to go into a menu and prevents me from doing so.

I have tried unplugging my controller, turning the software off, and disabling controller, but it still does it. There is like a 50% chance of it doing it when i open a menu etc, and once its done it once it keeps doing it until I plug my controller in and log out using that.

Really annoying, is there any solution please?

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Regards,
Melemyth