I have tried both wired and wireless USB mice and none of them work (5 in total).
I am aware that it should work with the pre installed drivers but It didnt so I did searches online for HID drivers and tried some that I could find online.
I have actually solved this problem myself now. :)
I searched in google for "Windows cannot load the device driver for this hardware. The driver may be corrupted or missing. (Code 39)" and found a number of forums pointing to the Registry Keys.
Although the forums were talking about devices other than USB (CD/DVD drives for example) I found repeated comments about UpperFilters and LowerFilters registry values. The forums were saying to delete the UpperFilters and LowerFilters values.
I searched in the Registry for the keys for HID and I found an UpperFilters value. I therefore deleted this value and restarted the computer. Low and Behold, any USB mouse I attached, worked!
Thanks for the possible solutions above.