Logitech Wireless Mouse Problem in Windows ME

I recently restored my 5 year old laptop with Windows ME on it. I have the
Logitech Wireless/Optical USB mouse which works just fine except for one
thing that has me stumped. When I use the mouse to click Start-Shutdown
the cursor stops functioning. However, the touchpad mouse still works.
Before I restored the laptop the mouse worked fine. I have tried the mouse
on another machine (although it had XP on it) and it worked fine. A wired
USB mouse works fine on the laptop and here is the kicker...when I use a
green USB-PS/2 adapter to plug the USB receiver in the mouse works fine. I
have already installed the latest software for the mouse from Logitech's
website. I have also tried disabling the touchpad altogether.

If anyone has any tips or ideas to try it would be appreciated. Thanks.