I've gone into some good troubleshooting today.  Tried out a new mouse.  Tried out a new mouse/keyboard combination.
Took out the USB 3 card to check on interference per Logitech website.  I disconnected the Impulse controller.  And the Integra.
 
The other day, I did the upgrade to Windows 8 to see if that would help.  It did not. 
 
I can't find any mouse settings that would change a mouse's click n drag to click and scroll. 
 
I would be okay if all the parameters worked the same..click and scroll but, Prochannel is not click and scroll cause, once you click, then scroll..well the scroll takes you up and down in pro channel. 
 
Support did give me some good directions to a roll back.  I'm guessing it'll take me half a day.  I think the two of us, TM, may have the only systems with the issue but, our systems are fairly different.  I'm on DP35 board with an Intel Core Duo 3GHz.  I bought it from ADK in 2008.  or late 2007.  I plan to send Scott Chichelli, my contact at ADK a note tonight.  He's been pretty good about information but, I overlooked that they offer lifetime support and maybe I should get them involved with this. 
 
I'll keep ya posted with what I'm trying that doesn't fix it until I find what does.  It seems impossible to me that the board and chip could be the issue.  And that's the only difference in mine and a lot of working systems.

Thanks for the legwork Haddox. What you've done is narrow it down to X2a, which we all pretty much suspected any way. 
I am running windows 7 with X2a with this mouse issue. So it must be something with the multi-touch code that induces this problem
with some combination of certain components that you and I for example share but is the missing part of the puzzle. 

I won't be rolling back however, I will just be using the inspector for now until they work out this bug. 

And by the way, I updated to X2a on my composition computer which also uses a gigabyte board, albeit a newer model from 2011 and Win 7 64.
No mouse problem on this one.