Intel Wireless Series Keyboard and Mouse boot issues

[triad]

Well after perfecting Ubuntu on my main system (and loving every
minute of it) I decided finally to migrate over my Entertainment
Center PC from Gentoo to Ubunutu.  Well I ran into a little problem. 
Installation went fine.  I used a generic ps/2 mouse and keyboard for
install.  After install system boots up fine with ps/2 mouse and
keyboard.  But once I connect my Intel Wireless Series Keyboard and
Mouse setup to the machine and try to boot the system hangs right
after initializing Hotplug.  No errors nothing.  I can actually hit
the enter button on the wireless keyboard and it will perform a line
space on the screen but nothing happens.  Ubuntu just hangs.  So I
unplugged Wireless from USB and boot up with trusty ps/2 mouse and
keyboard.  Then I plug in Wireless to USB they dont work.  I look at
dmesg and this is errors I recieved:

ohci_hcd 0000:00:07.4: wakeup
usb 1-2: new full speed USB device using address 2
usbcore: registered new driver hiddev
drivers/usb/input/hid-core.c: ctrl urb status -2 received
drivers/usb/input/hid-core.c: timeout initializing reports

usb 1-2: control timeout on ep0out
input: USB HID v1.00 Keyboard [8086:c013] on usb-0000:00:07.4-2
drivers/usb/input/hid-core.c: ctrl urb status -2 received
drivers/usb/input/hid-core.c: usb_submit_urb(ctrl) failed

Any help to rectify this problem would be greatly appreciated.  If you
need any more information please let me know.

Andy