Thank you Cory for your input.
I have searched the forums and had found the link you mentioned, however it is in regards to the mouse pad on laptops.
After talking to some IT experts and Stan Jones, it appears that Windows considers both the mouse and the keyboard as one entity and thus you can not disable one without the other. Furthermore, my macros will not be run under an administrator user profile, so I am very limited in what I can do.
Ultimately, it appears that my only option is to use the Macro Express "Lock/Unlock Keyboard and Mouse" command and create a persistent text box which explains how to over-ride the lock for the duration of the macro.
The above quote is an excerpt from Insight Software Solutions' Macro Express Pro Instruction Manual
http://www.macros.com/download/macroexpressprohelp.pdf
Hopefully this thread will be a better point of reference for developers in a similar predicament.