You should follow these steps:
1. Turn your laptop OFF completely, not Restart!. Then turn it on.
2. Try pressing the FN + F5 button (It works for the Toshiba Satelite of a friend though I don't know if this should be valid for all Toshiba Satelite models)
3. Control Panel > Mouse > Device Settings, where you have the option to either Enable or Disable your touchpad. If it's enableD, disable it, restart your computer and then enable and apply
If that doesn't fix the problem and you happen to have Windows 8 , check the touchpad settings. Go to the Start menu or the Windows 8 search charm and type mouse settings. Select Change Mouse Settings (there are other options that are very similar, so pick the one with that exact wording). Once in the dialog box, click the tab that seems to be for your touchpad (the name varies from model to model). Make sure that everything is enabled. If there are setting buttons, make sure that everything is on.
I don't believe that it's a driver problem but as last resource, there is some possibllity that your driver has been auto-updated and the new version is not working correctly. So look up the original driver in your installation DVD and reinstall it.
If none of these suggestions work, you've got a hardware problem. Assuming you're not ready to try this sort of repair yourself, you have two options: You can send the laptop to a shop for repairs, or you can buy a small, wireless mouse and use that in its place.
A FINAL COMMENT: Asker gave thanks and wrote that it's a great answer... but never tuld us the solution of the issue. Well, what can I say!