Looks like my issue is best described here
Intel actually did testing on this issue (USB 3 interference with wireless devices in close proximaty)
Anyways, I had an extension cable for my logitech wireless MS wireless keyboard USB dongle thing and moved it away from my mac mini and the offending WD drive; all seems to be working better now.
My concern here though has to do if I upgrade to Bluetooth keyboard and mouse will I have the issue appear again?
What type of keyboard and mouse did the original poster have? (bluetooth, usb wireless dongle, wired)??