Problem with connecting wireless mouse.

Hi to all. I have problem with connecting my mouse to the laptop.The laptop is DELL Latitude D420.Running Windows7 Ultimate with SP1, up to date, the latest updates but something goes wrong.I bought an wireless mouse ACME model MW01.When I plug in the mouse it says that device is ready for use, in "devices and printers" section the laptop recognize the mouse  as a  2.4G wireless nano mouse,at the bottom of the mouse the red ligth blinking so everithing seems to be fine but still the mouse doesn't respond. Does anyone have an idea where am doing mistake?

Many thanks in advance.

Regards Velkow.