I use a wireless xbox360 controller for Windows.

When I'm at my computer I use a Deck Legend keyboard and a Logitech G9x mouse. At my TV I use some bluetooth wireless mouse/keyboard combo, also from Logitech.

I go back and forth, but mostly I use the controller for combat and mouse/keyboard for chat and the rare occasion where I attempt crafting again.

As far as targeting goes, I find when using the "enemy" targeting mode, pressing left/right on the digital pad targets enemies, while pressing up/down targets PT members. It seems to work okay, but the F8 trick is probably slightly faster.