Windows 7 Not Working Properly Or Correctly Accepting Input?

I was using my laptop (HP Pavilion dv6) just fine recently, and through half of yesterday. I did what I normally do when I leave a friends house...I shut it down correctly using the shut down option at the start menu, then pack it into my laptop bag (has a padded sleeve it fits into) and came home. Later that evening I tried to boot it up like normal. For some reason the wireless card takes forever to load and connect, so I typically turn it on and leave it there while I do something else. When I came back the PC said it was locked, which it never usually locks, especially after only 10 minutes. I unlocked the PC and it had my options for monitors (monitor only, expanded, monitor and tv, etc). I selected the PC monitor only and tried to load things like normal. Loaded a few programs and went to send an IM and the keyboard seemed to be stuck on the g or 8 key and wouldn't allow me to stop the input unless I clicked on the desktop. I could not click back in and delete it. Attempts to do so made the screen lock and give me the monitor options again.

At this point I figured it had to be virus/malware related so I tried to reboot into safe mode with networking. I got the options to come up but it was like the up arrow was stuck and wouldn't allow me to manually control and select an option. Had to hard reboot with the power key to try again. This time it would not move at all. I have two pc's and both have tTamviewer so I opened it on both and was able to remote in and do some scans. Spybot found a few things as well as Malwarebytes and I selected remove selected. Rebooted and still having the same issue. Tried scanning using my Avast Internet Security 7 scan and let it run overnight with Malwarebytes again. Malwarebytes brought back a PUP.funmoods (which I have uninstalled in add/remove programs and, while annoying it's showing up, don't believe to be the case because that was uninstalled months ago) and I had a huge list of files in Avast that said they could not be scanned. I have tried using system restore. I do notice when Windows boots up, it shows an empty command prompt box that eventually disappears and then a second one comes up later that says:

"AMD accelerated video transcoding device initialized Copyright (c) 2012 Advanced Micro Devices, Inc. All rights Reserved."

I did recently update my graphics card (ATI Mobility Radeon HD5650) to the latest driver. I have tried rolling back the driver and still no option. I entered the command in the command prompt to run check disk at next boot but it does not run or give an error. It just seems to skip it and go straight to Windows. A friend thought it was simply the input items on my PC giving it issues because the problem wasn't happening through Teamviewer on my Dell PC, however, that started exhibiting similar problems but not on the same scale.

Specs:
Intel Core i7 CPU
q720 @1.60 GHz
8GB RAM
Windows 7 Home Premium 64 Bit