if i may chime in here, i have pretty much the same problem...
for reference, a couple of pertinent specs:
windows vista ultimate (x86)
asus P5N-E SLI (BIOS v.0901 / feb. 20ish, 2008)
it started after two possible changes to my computer:
1) the last monthly windows update(s)
2) a new razer deathadder mouse i installed AFTER updating the firmware on a different computer (known issues with asus motherboards if not first updated)
when i first installed the mouse, everything worked just as it should. the mouse worked fine for a day or so until i think the MS updates were installed. the timing with this combination really sucks as far as troubleshooting is concerned.
anyway, i know the new mouse (and my old mouse, and another cheap usb mouse a friend lent me) works, so that's not the issue.
all of my USB-related drivers have been uninstalled and reinstalled to no avail. the only driver i haven't touched is my keyboard as it has somehow miraculously continued to work and is my only way to continue to interact with my computer.
curiously, when i go to repair my system from my windows disc, the mock OS (off the disc) loads whatever proper drivers (i'm guessing here) the mice need to track, and any of the three USB mice will work just fine. as soon as i get back to my regular windows install, however, the mice once again fail to track.
to me, this means a file or files are corrupt on my windows install. i have tried to delete the "infcache.1" file as i have read in a few places, but that didn't solve the problem either.
my conclusion is this ... how can i figure out which files (and/or driver inf/sys files) are corrupt on my windows install, and how do i go about replacing those files with the 'good' files from my windows recovery CD?
am i completely nuts here, or is my thinking based at least somewhat on reality?
sorry for the rant, but i wanted to be as specific as possible. this is quite the annoyance, and perhaps someone here can put two and two together ... once and for all.
thanks in advance for any help on the matter.