Ok, this track ball on the Enermax was really giving me the blues yesterday. Re-locating the receiver helped, but it is just a POS plain and simple when it comes to the track ball. It is now officially on its way back to Newegg.
Today I went to Best buy and bought a Logitech Cordless Desktop wave pro that comes with the MX1100 mouse. FINALLY I have complete control of my HTPC. Yes it's a full size keyboard, but after playing around with all these cheesy neutered keyboards and remotes, I can finally navigate 100% with this set up.
No dropped keys, and the mouse works perfectly!!! I'm happy. I wish you guys luck with whatever you end up with.