Bluetooth Dongle Not Working - Windows 7

I upgraded my Dell Dimension 4600 to Windows 7. It works great except for my Windows Keyboard and Mouse Elite for Bluetooth. Windows Compatibility Center says it should work with default drivers but it doesn't and they provide no support. I have searched many forums, probably tried 7 or 8 different proposed solutions and nothing seems to work. Device Manager says it is installed and working properly but when I go to Add a Device, it does not find anything (phone, mouse, keyboard) even though I have made sure they are discoverable.

So, I went out and bought a new IOGear GBU421 Bluetooth 2.1 USB Micro Adapter that specifically says it is Windows 7 compatible. Per the instructions, I ran the Setup from the CD it came with and plugged in the adapter at the time the setup told me to. It installed all of the drivers and said I was ready to go. After a restart, I went to Add a Device and just like before it will not discover my mouse, keyboard or phone. I went to the IOGear website and downloaded and installed the updated driver with the same results. Still not working. I called IOGear and they stepped me through a few things and still not working. At their suggestion, I took the dongle to another computer that is also running Windows 7. At their suggestion, I just plugged it in and let Windows automatically install the drivers. After a restart I went to Add a Device and it worked perfectly on the other computer. So, their suggestion is to go back to my Dell, un-install what I installed from the CD and from the online update, remove the device via device manager and have it also remove the drivers, restart and plug in the dongle and let Windows find and install the drivers just as it did on my other computer. After doing all of that, it still will not work on the Dell.

Perhaps there is something I did not remove? Perhaps there is a hardware conflict even though nothing shows up in Device Manager?

Does anyone have a thought on this.