Minecraft 1.6.2 Can't Respawn+ Flashing when clicking

Whenever I open up minecraft in 1.6 I get this bug where when ever I click something, the game flashes transparent, and says not responding for a second, then stops. This happens almost everytime I click something and seems to be more frequent when in small screen. Also frequently when I type the text will keep deleting it self. I can usually stop this by clicking to another program than back to minecraft before I type. The final problem I have is that most of the time when I die the respawn button is greyed out.
The video file was too large to put here but I put it on youtube: http://youtu.be/k680L2ki3eo
I forced a crash report here:

--- Minecraft Crash Report ----
// Who set us up the TNT?

Time: 02/08/13 9:50 PM
Description: Manually triggered debug crash

java.lang.Throwable
	at ats.k(SourceFile:1238)
	at ats.S(SourceFile:663)
	at ats.d(SourceFile:619)
	at net.minecraft.client.main.Main.main(SourceFile:101)


A detailed walkthrough of the error, its code path and all known details is as follows:
---------------------------------------------------------------------------------------

-- Affected level --
Details:
	Level name: MpServer
	All players: 1 total; [bdf['NeoNxRazmatazZx'/248, l='MpServer', x=-249.50, y=64.62, z=259.50]]
	Chunk stats: MultiplayerChunkCache: 441
	Level seed: 0
	Level generator: ID 00 - default, ver 1. Features enabled: false
	Level generator options: 
	Level spawn location: World: (-253,64,253), Chunk: (at 3,4,13 in -16,15; contains blocks -256,0,240 to -241,255,255), Region: (-1,0; contains chunks -32,0 to -1,31, blocks -512,0,0 to -1,255,511)
	Level time: 1021 game time, 1021 day time
	Level dimension: 0
	Level storage version: 0x00000 - Unknown?
	Level weather: Rain time: 0 (now: false), thunder time: 0 (now: false)
	Level game mode: Game mode: survival (ID 0). Hardcore: false. Cheats: false
	Forced entities: 84 total; [st['entity.MinecartChest.name'/118, l='MpServer', x=-321.50, y=24.25, z=251.50], st['entity.MinecartChest.name'/117, l='MpServer', x=-313.50, y=24.50, z=248.50], st['entity.MinecartChest.name'/116, l='MpServer', x=-325.50, y=19.50, z=253.50], st['entity.MinecartChest.name'/115, l='MpServer', x=-312.50, y=24.50, z=241.50], st['entity.MinecartChest.name'/121, l='MpServer', x=-325.50, y=6.50, z=286.50], st['entity.MinecartChest.name'/120, l='MpServer', x=-315.50, y=23.50, z=265.50], ry['Sheep'/129, l='MpServer', x=-309.06, y=65.00, z=273.59], ry['Sheep'/128, l='MpServer', x=-309.53, y=64.00, z=267.19], ry['Sheep'/131, l='MpServer', x=-306.50, y=64.00, z=268.50], ry['Sheep'/130, l='MpServer', x=-310.09, y=64.00, z=269.03], ry['Sheep'/171, l='MpServer', x=-217.50, y=65.00, z=325.28], ry['Sheep'/170, l='MpServer', x=-224.50, y=67.00, z=327.50], ry['Sheep'/175, l='MpServer', x=-206.50, y=63.00, z=290.50], ry['Sheep'/173, l='MpServer', x=-217.50, y=65.00, z=327.50], ry['Sheep'/172, l='MpServer', x=-219.66, y=66.00, z=327.72], ry['Sheep'/178, l='MpServer', x=-200.13, y=63.00, z=292.66], ry['Sheep'/179, l='MpServer', x=-219.22, y=66.00, z=333.09], ry['Sheep'/176, l='MpServer', x=-196.34, y=68.00, z=278.50], ry['Sheep'/177, l='MpServer', x=-203.84, y=63.00, z=292.50], ry['Sheep'/182, l='MpServer', x=-213.69, y=65.00, z=336.31], ry['Sheep'/180, l='MpServer', x=-216.78, y=65.00, z=337.59], ry['Sheep'/193, l='MpServer', x=-199.50, y=64.00, z=336.50], ry['Sheep'/192, l='MpServer', x=-197.50, y=64.00, z=336.50], ry['Sheep'/195, l='MpServer', x=-204.72, y=64.00, z=332.69], ry['Sheep'/194, l='MpServer', x=-198.84, y=64.00, z=332.16], bdf['NeoNxRazmatazZx'/248, l='MpServer', x=-249.50, y=64.62, z=259.50], rn['Bat'/549, l='MpServer', x=-252.72, y=28.21, z=264.46], tq['Skeleton'/547, l='MpServer', x=-263.50, y=18.00, z=270.91], te['Creeper'/519, l='MpServer', x=-230.50, y=21.00, z=308.50], tv['Zombie'/10483, l='MpServer', x=-263.53, y=17.00, z=278.98], rn['Bat'/639, l='MpServer', x=-240.25, y=17.10, z=335.75], tq['Skeleton'/10334, l='MpServer', x=-235.50, y=18.00, z=290.50], te['Creeper'/10367, l='MpServer', x=-276.72, y=13.00, z=247.94], te['Creeper'/10366, l='MpServer', x=-277.50, y=14.00, z=251.50], tq['Skeleton'/10363, l='MpServer', x=-276.50, y=14.00, z=253.50], tq['Skeleton'/10362, l='MpServer', x=-275.50, y=14.00, z=253.50], rn['Bat'/642, l='MpServer', x=-240.59, y=17.10, z=335.53], tq['Skeleton'/10257, l='MpServer', x=-277.50, y=41.00, z=291.50], tq['Skeleton'/10262, l='MpServer', x=-315.50, y=37.00, z=204.50], tq['Skeleton'/10261, l='MpServer', x=-315.50, y=37.00, z=203.50], tq['Skeleton'/10260, l='MpServer', x=-313.84, y=37.00, z=204.50], te['Creeper'/10273, l='MpServer', x=-282.31, y=57.00, z=276.53], te['Creeper'/10274, l='MpServer', x=-280.22, y=56.00, z=272.36], tq['Skeleton'/722, l='MpServer', x=-273.50, y=27.00, z=331.50], tq['Skeleton'/723, l='MpServer', x=-271.50, y=27.00, z=331.50], tq['Skeleton'/724, l='MpServer', x=-275.09, y=26.00, z=341.44], te['Creeper'/809, l='MpServer', x=-261.50, y=41.00, z=225.50], ts['Spider'/774, l='MpServer', x=-300.09, y=29.00, z=315.59], te['Creeper'/775, l='MpServer', x=-301.50, y=29.00, z=317.50], te['Creeper'/776, l='MpServer', x=-284.50, y=37.00, z=281.50], tq['Skeleton'/777, l='MpServer', x=-282.50, y=37.00, z=281.50], tq['Skeleton'/881, l='MpServer', x=-292.50, y=18.00, z=249.50], sr['item.item.apple'/4700, l='MpServer', x=-190.22, y=79.13, z=225.41], tq['Skeleton'/877, l='MpServer', x=-290.06, y=18.00, z=259.47], tq['Skeleton'/878, l='MpServer', x=-291.50, y=18.00, z=247.50], tv['Zombie'/837, l='MpServer', x=-270.50, y=28.00, z=336.06], tq['Skeleton'/10674, l='MpServer', x=-289.50, y=25.00, z=321.50], te['Creeper'/10672, l='MpServer', x=-289.50, y=25.00, z=320.50], tq['Skeleton'/958, l='MpServer', x=-315.50, y=12.00, z=266.50], tv['Zombie'/10591, l='MpServer', x=-254.50, y=21.00, z=220.50], te['Creeper'/918, l='MpServer', x=-256.50, y=16.00, z=259.50], te['Creeper'/919, l='MpServer', x=-258.50, y=16.00, z=261.50], tv['Zombie'/10600, l='MpServer', x=-254.50, y=17.00, z=283.50], te['Creeper'/10504, l='MpServer', x=-273.50, y=17.26, z=256.63], tv['Zombie'/984, l='MpServer', x=-312.50, y=12.00, z=268.50], tv['Zombie'/985, l='MpServer', x=-310.97, y=12.00, z=270.47], tq['Skeleton'/991, l='MpServer', x=-306.31, y=20.94, z=201.69], tv['Zombie'/10532, l='MpServer', x=-253.50, y=50.00, z=233.50], ts['Spider'/1109, l='MpServer', x=-283.94, y=56.00, z=273.72], ts['Spider'/1110, l='MpServer', x=-274.00, y=57.00, z=272.78], te['Creeper'/1041, l='MpServer', x=-273.03, y=47.00, z=243.47], sr['item.item.apple'/9867, l='MpServer', x=-187.81, y=80.13, z=225.81], tv['Zombie'/9981, l='MpServer', x=-309.50, y=25.00, z=332.50], tv['Zombie'/9982, l='MpServer', x=-311.50, y=25.00, z=333.50], tv['Zombie'/10035, l='MpServer', x=-270.50, y=38.00, z=276.50], ts['Spider'/10033, l='MpServer', x=-280.16, y=37.00, z=279.78], ts['Spider'/1332, l='MpServer', x=-265.50, y=24.00, z=197.50], sb['Squid'/10129, l='MpServer', x=-291.50, y=47.38, z=218.78], sb['Squid'/10130, l='MpServer', x=-295.47, y=47.00, z=222.50], tv['Zombie'/10125, l='MpServer', x=-328.50, y=15.00, z=260.50], te['Creeper'/10233, l='MpServer', x=-292.50, y=56.00, z=191.50], rn['Bat'/10211, l='MpServer', x=-244.55, y=31.65, z=263.25], rn['Bat'/10192, l='MpServer', x=-273.65, y=26.83, z=252.89], te['Creeper'/3366, l='MpServer', x=-213.50, y=19.00, z=290.50]]
	Retry entities: 0 total; []
	Server brand: vanilla
	Server type: Integrated singleplayer server
Stacktrace:
	at bda.a(SourceFile:284)
	at ats.b(SourceFile:1761)
	at ats.d(SourceFile:628)
	at net.minecraft.client.main.Main.main(SourceFile:101)

-- System Details --
Details:
	Minecraft Version: 1.6.2
	Operating System: Windows 7 (amd64) version 6.1
	Java Version: 1.7.0_25, Oracle Corporation
	Java VM Version: Java HotSpot(TM) 64-Bit Server VM (mixed mode), Oracle Corporation
	Memory: 155234664 bytes (148 MB) / 486998016 bytes (464 MB) up to 954466304 bytes (910 MB)
	JVM Flags: 2 total; -XX:HeapDumpPath=MojangTricksIntelDriversForPerformance_javaw.exe_minecraft.exe.heapdump -Xmx1G
	AABB Pool Size: 22651 (1268456 bytes; 1 MB) allocated, 2 (112 bytes; 0 MB) used
	Suspicious classes: No suspicious classes found.
	IntCache: cache: 0, tcache: 0, allocated: 3, tallocated: 63
	Launched Version: 1.6.2
	LWJGL: 2.9.0
	OpenGL: AMD Radeon HD 7700 Series GL version 4.2.12337 Compatibility Profile Context 13.101.0.0, ATI Technologies Inc.
	Is Modded: Probably not. Jar signature remains and client brand is untouched.
	Type: Client (map_client.txt)
	Resource Pack: Default
	Current Language: English (US)
	Profiler Position: N/A (disabled)
	Vec3 Pool Size: 1555 (87080 bytes; 0 MB) allocated, 11 (616 bytes; 0 MB) used