I just installed Mint 18.1. All was fine for several sessions. I then
used Driver Manager to update NVIDIA driver to 340, the recommended
choice. Initially, fine but the system became unstable and would lock up
with the display in a rolling crash. So, I switched the driver to 304
legacy choice. The system was stable, but the taskbar and menu became
unresponsive. This had also happened under the 340 driver, but I did not
get the clue. When I went back to the open source driver, the problem
completely disappeared. So, use the open source driver that comes with
the install ISO and leave it alone.

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https://bugs.launchpad.net/bugs/1159707

Title:
  Cinnamon panel / task bar becomes unresponsive to mouse

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