It sounds like explorer has crashed. It's not your mouse.
Open the task manager-->end the explorer service-->go to file-->new task-->type explorer.exe-->run.
Did this work?
Since Windows is have trouble initializing your pointing devices (as indicated in your Device Manager), seems to me that something else may be going on. Do you know when this problem started happening? Did you change anything just before these issues popped up?
Also, is Windows fully up to date (Windows Update)? What make and model of laptop/notebook are you using?