A "small white transparent circle" keeps popping up at the mouse pointer blocking my mouse clicks. It also has arrow signs that keeps moving my screen up or down,left or right.

I've done everything. Pulled off the mouse connection and inserted it again. Changed my mouse settings and back again. Reformatted my computer. Used several free antispyware like Spybot, AAw, SuperAntiSpy, Registry Cleaner,etc.

But I've noticed that the mouse problem starts whenever I connect to the Internet. I suspect that the virus is embedded into my web browsers like the Mozilla Firefox and Opera. As a result I uninstalled these browsers and even erased the files associated to them and downloaded fresh copies of those browsers again.

Unfortunately,the "small white circle" still haunts my mouse after I've done everything. Still haunts me even while I'm writing this message.

You mean like this?

You get that when you press the middle mouse button, and it's meant to be a useful feature to allow you to slow-scroll a document without having to do anything except move the mouse to regulate the speed.

A "small white transparent circle"

I believe you are referring to the 'Universal Scroll' feature of most mice. This is not malaware if infact it is the Auto scroll or Universal scroll; it is actually normal operation. Perhaps your mouse is getting old and the middle button (wheel) is being pressed to easily, or not being depressed, which could be causing it to show up more often than desired.

I'm not sure if this article pertains to your type of mouse, but if you use a Microsoft mouse it should explain how to disable the universal scroll: http://support.microsoft.com/kb/185537

Perhaps it is time to be looking for a new mouse if your center scroll wheel is not working properly or is stuck.

Wow,thanks for all the replies and suggestions. Great help guys! I'll try all your recommendations. Thanks!