Z68-GD65 Hangs on Starting Windows because of USB Controller. Any fixes?

Question

Issue: During Windows 7 (32 bit & 64 bit) installation and startup, the computer hangs at "Starting Windows". It will display a pixel or two of the first red part of the logo animation and then stop.
System Setup/Hardware:
Mobo - Z68-GD65
RAM - Corsair Vengeance 8GB (2x4GB)
HDD - Corsair Force 3 60GB SSD
CPU - Intel i5-2400 (Sandybridge)
PSU - Antec Earth Watts 650W
GPU - Asus Geforce GTX 560 Ti
Cause: I found that when I disabled the USB Controller completely from the BIOS, everything worked smoothly (install & startup). If I left the USB Controller enabled and just disabled the Legacy Controller, I would be left with a blinking DOS cursor after POST.
This is an issue because both keyboard and mouse are USB. I had to borrow an old PS/2 mouse to even install windows.
Troubleshooting tried:
- Tried disabling EVERY (and yes, I mean every, I've rebooted this thing 50+ times [stopped keeping track]) setting that can possible be disabled individually
- Tried unplugged every component except: board, hdd and dvdrom
- Tried swapping RAM
- Tried swapping HDDs (to Sata non SSD)
- Tried swapping PSUs
- Tried changing Windows 7 install discs (one 32 bit, one 64 bit)
- Tried removing all motherboard connections (FP audio, FP usb, etc, everything but 24+8pin power)
- Tried clearing CMOS and resetting BIOS
- Tried enabling USB Controller via ClickOnce BIOS and restarting
- Tried fully updating Windows 7 and all drivers (video, mobo, etc)
- Tried updating BIOS with Live 5
- Tried leaving only USB 3.0 Controller enabled and plugging mouse/keyboard into those ports (blue on back)
- Tried Windows repair
- Tried Windows boot logging (got to file CLASSPNP.sys)
- Tried booting to Safe Mode
- Tried banging head on wall  (this was successful in giving me a headache, but not booting the computer)
I mainly list the troubleshooting above to convey the amount of frustration I've had with this board.
The USB Controller simply seems bad or the driver (or the way the board interacts/loads the Windows driver) is bad. I must have USB on my computer.
If I need to RMA, please let me know, however, I would hope there is a solution out there to fix the USB Controller issue. The RMA deadline is the 20th, I hope I can get an answer one way or the other before this as if there is no answer, I will be forced to RMA and go with another product from a different manufacturer (I really wanted to get over my "Asus only" attitude and try you MSI! I've been impressed up until this point, please don't let me down).
Please help?
-Frazzled not tech illiterate personal system builder.

Answer 1

phasedone,
I was having the exact same issue with a new build (Mobo MSI Z68-GD65-G3).  I had been banging my head against the wall for a while and then I came across your post.  Subsequently, I disabled the USB controller in BIOS and my Win 7 install ran fine (minus the fact that I had no access to my USB keyboard and mouse).   I set the BIOS back to default settings which re-enabled the USB controller, and thus was able to re-plug the mouse and keyboard in after the windows loading screen, where the 4 colored orbs come together to make the Windows flag.  This seemed to do the trick.
Now the problem is, everytime the computer restarts (i.e. for any Windows updates), it freezes at the same point it would during the installation.  This is again assuming the mouse and keyboard are still plugged into the rear panel USB ports.  Which of course they're going to be!
Anyone with a recommendation as to how to fix this?  Is this a hardware defect or can it be solved with some sort of driver or firmware update?  I'm at a loss... but I certainly shouldn't have to unplug all USBs before starting the computer, that's just nuts.
I'm considering RMA as well, but would like to see if any MSI staff members or forum members might be able to share their insight.