I'm not sure what's causing your issue - but as a test I currently have Seven controll devices plugged into the BBox (via a 7 port USB Hub) and all seven function without issue and no interference between each other -- ( a Rii RF mini k-brd/track-pad, a Lenovo N5901, the BBox remote, a wired keyboard, a wired mouse, a wireless Logitech mouse and a wireless Logitech keyboard )
Maybe if you turn off the BBox, plug the mouse' USB dongle in the BBox and then turn the BBox back on it will 'find' the mouse
Is the MS mouse an RF model or IR/line of sight - are batteries ok in the mouse - grasping at straws here!

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