UPDATE:-
My system is a Toshiba Laptop A200 P4 1Gig Ram, Win XP with external monitor, and wireless logitec keyboard/mouse.
Tried a normal USB Cable mouse, but still faulty.
New version of MED that came with A7.70 Works correctly (rotate/scale) on the Laptop.
Also The laptop is located remotely from my work space so I don't go anywhere near the touchpad.

Copied A7_70 to my desktop PC and used same Keyboard and mouse on it as my laptop and it works Correctly.

So it appears to be something with the laptop.
Heres the weird thing.
A5, A6.314, A7.50 and every other program on the Laptop work perfectly, it's only A7.70 WED that has problems.

Jethro.