microsoft wireless optical mouse 2.oA problem

Hi guys,
I'm a bit of a forum virgin so please bear with me. I've suddenly got a problem with my mouse. it was working saturday night but now seems lifeless when plugged into usb.
I have an optical wireless microsoft mouse. I have done all the following to attempt to problem solve -
Changed batteries.
pressed buttom on comunication thingy to set a different channel (which the mouse actually picked up as it stopped flashing)
plugged into a different usb socket which I knew worked. The computer didn't recognise new hardware. (although plugging in an external hard drive caused the new hardware wizard to launch, thus eliminating the notion that the computer can't recognise new hardware)
At this point a lot of you might say "it's definately dead, either mouse or communication thingy"
I have the wireless keyboard which still works fine from the same thingy.
I plugged the reciever/thingy into my laptop and the mouse worked completely as expected ( it found new hardware and installed driver without problem and the mouse works as normal).
I then downloaded the new intellipoint software v6 from microsoft web site but it still didn't work.
I have plugged the whole thingy into a ps2 adapter and the mouse now works however if there is any experts out there that can tell me how to rectify the problem without re-installing window, I'd be very appreciative of help.
Thank You Kizzy