Mouse not recognised and USB Keyboard occasionally not recognised

I'm on Windows XP, AMD Athlon 2.19 Ghz, 608MB RAM, The mouse has no manufacturer on it and the drivers don't show up in Device Manager.

For the keyboard, in Device Manager, under keyboards, it says: 'HID Keyboard Device' and 'Standard 101/103-Key or Microsoft Natural PS/2 Keyboard'

The Mouse is connected with a small circular input which I think is a serial port.

When I unplug the mouse, the computer makes a high pitched circular noise, almost melodic, this only happened twice.

The mouse is there in the middle of the screen, but doesn't respond. In safe mode, it still doesn't respond.

I don't have another mouse to test, but the sensor light at the bottom still works, if that's relevant and I haven't installed any new hardware recently.

In what I feel is related (as I'm reckoning this is an SCSI problem), I tried to update the SCSI and RAID driver, but it failed to do so and said 'an error occurred during the installation of the device. The specified service does not exist as an installed service.' Now, every time I boot the computer, a 'Found New Hardware' Wizard starts up, again trying to download the driver and again failing.