I had to go into

Control Panel/Hardware and Sound/

Under Devices and Printers option an option called "Device Manager" with a shield next to it is what you click.

I looked under "Human Interface Devices" and scrolled down some until i saw "Vjoy Virtual Joystick" i right clicked it and clicked "Disable" and now the game launches and runs fine even with my Logitec mouse and Merc keyboard.

I dont know if that virtual joystick was installed by steam or something but i never remembered downloading it.

Hope that helps.