Also, I ran my Pi with the PSU that came with it, and I even tried to run it with an iPad charger rated at 2000mA and 5V. Still the same issues.

My power source came with the USB hub, it is 5V and 2.6A. It was powering my keyboard and mouse fine.

Okay, so I correctly installed the NOOBS software onto an 8GB SD card and it works fine. I hooked up my Pi with an off brand keyboard I had laying around and, no surprise, it didn't work. So, I bought the Logitech MK320 Keyboard and Mouse Combo and the Belkin Hi-Speed 4-Port USB 2.0 Hub model F5U234...