Yash007 :
When I run the game in full screen, the mouse does not work in menu and HUD is not displayed when playing.When I play it in windowed mode,it runs well.I disabled Windows Aero also,the problem persists.
Following worked for me....
1. Create shortcut of the game on your desktop.
2. Right click->Properties.
3. In the dialog box, select 'Shortcut' tab.
4. Under 'Run' menu, select 'Maximized' option from the drop down list.
5. Click 'Apply' and then 'OK'.
6. Now you are good to go....
Always launch the game using this shortcut.
This solved the problem of unresponsive mouse for me.
Now check the video resolution in the game... change it to suit your needs.
Don't disable Windows Aero Peek (if that is what you are talking about)..... I actually like the feel of it.