Thanks for this article. It never occurred to me that I could connect a standard keyboard/mouse to my Nexus 7. Tried it, worked great. No issues.
After the initial shock wore off, I decided to try the IBM "Thinkpad USB Keyboard and Trackpoint" unit that I have; it's FRU 55Y9003, cost me about $50, and should be easily found on ebay, etc.
What's great about this unit is that it has BOTH a keyboard and the red 'eraser head' trackpoint/mouse (no trackpad) -- and BOTH work when plugged into the Nexus 7 with the single USB OTG connector. This means one can type AND move the cursor around as if using a standard computer. I use a ThinkPad, and prefer the Trackpoint, so now the Nexus 7 is really no different than using the Lenovo.
Thanks HTG for the basic info. That's why I visit your site.