A few quick questions

So, my mouse and keyboard occasionally freeze up (though the mouse happens more often), forcing me to reboot the whole PC just to get things moving again.
I doubt it's the cables or the hardware itself, so I'm leaning towards a faulty USB-port. I'm using a Logitech G500 mouse and a basic Havik membrane keyboard I picked up just last week.
The system is clean and definitely doesn't have any viruses. What should my next move be? It seems logical that if they work fine immediately after a restart, the issue lies within the system...
I also spotted a suspicious-looking app in Task Manager called SWusb. Here's a screenshot.
task manager screenshot

And because of this, I can't even install Chrome on the machine.

Chrome screenshot

I did run some updates—had about 200 waiting, totaling about 1GB. That was through Windows update.

Windows update screenshot

Is SP1 installed?

Is this running on XP?
The label on the USB drive says it’s some kind of Windows XP Service Pack 2 build.
If it is (and I'm pretty sure it is), you should probably just wipe those old XP drivers off your system.