for starters, the mouse was taken over..thats when i pulled the plug.
i turned my lap top on and all my folders were gone. and things/items i saw some were changed .. modified....THAT DAY. i found some of my items in a folder
So you were using your computer and your mouse suddenly started moving? This would require a remote desktop product such as "LogMeIn Rescue" or "TeamViewer." Microsoft's RDP client wouldn't perform interactively with your desktop unless you used the "Remote Assistance" app. These solutions cannot be installed without interactive permission, so someone installed it while using your machine.
i turned my lap top on and all my folders were gone. and things/items i saw some were changed .. modified....THAT DAY. i found some of my items in a folder
This is harder to understand. What do you mean by "all my folders were gone?" There are hundreds of directory structures in a standard Windows installation. What was missing and from where?
they took one of my identities and got into my microsoft acct..its not easy to get in there, so i wonder what he used...
You can recover a compromised Microsoft account, and Microsoft WANTS TO KNOW this happened.
Recover Hacked or Compromised Account
made users and took ownership of folders they had their thievery in.
Made users where? On your machine? If you're smart enough to know where to look for local user accounts, you're likely smart enough to know how to disable services and stop tasks running on the desktop. With your machine disconnected from the Internet, go disable those accounts and any services that look suspicious. No harm can come to your machine if it's not on the Internet unless they've installed ransomware, and if you don't have a recent backup, you can't recover from that anyway.
What version of Windows are your running? If you're running Windows 10, I do not recommend you install ANY third party antivirus/antimalware/firewall solution. They will directly conflict with the built-in Windows 10 security suite and could create ingress points on your machine that cannot be detected. Anything "free" in the security world should be considered suspicious.