I had exactly the same thing happen to me the other day with a Microsoft Wireless mouse, while a cheapy spare Belkin mouse I had lying around worked first go in the same port.

I thought it was a little strange that a Microsoft Mouse would'nt have drivers already in Vista, or lack support completely, so I tried every USB port on the system and found one worked, while the others all installed as the USB Browser Mouse and then not work.

Have you tried all your USB ports? Including the extra ones on your main board that might not have a plug connected to them?