While trying to help Mouser track this bug down by trying older versions this morning, I stumbled on to what may be the problem (when I accidentally deleted my FARR .ini file instead of the FARR .exe). FARR regenerated a default ini file -- and suddenly worked again. By going through and modifying the default ini it generated one item at a time until FARR broke, I discovered that if I set Inactive Memory Use (In the General Tab) to either Minimal or Average, I got the weird selection with mouse behavior. When left Inactive Memory Use in the default "Stay in Memory Longer" setting, FARR works just like it is supposed to. You might check this on your system.
I still get the behaviour and my memory setting is the default one. I haven't tried deleting the .ini file yet but will do so as soon as I get a chance.