Windows 7: "USB device not recognized"

Hey all!

My brother got a laptop (Fujitsu Siemens AMILO Pi 2530) from his summer institute. We tried to plug a normal wired mouse into it, but we got an error "USB device not recognized", and in control panel it says Unknown device. We spent last 2 days googling around internet, we did ALMOST everything but nothing helped. From typical uninstalling USB root hubs to that "hold on power button for 30secs" thing. We tried 3 mouses, keyboards, web cams but nothing wants to be recognized, only digital camera and USB sticks work.
Now we are wondering if USB hub would help? or wireless mouse? or another model of mouse? we used genius mouses btw. Those 3 are only options we haven't tried, and I hope some expert will explain us what to do.
I hope I'll get help here, since this is really really frustrating problem.

Now a days, all devices are plug and play (PnP) because Windows will automatically detect and display them. In most cases, PnP for every device works fine. In your adverse situation, you could visit the web site of USB manufacturer to find out if they have any updated drivers versions and then install it. Make sure about the drivers compatibility issues. Don't forget to inspect physically the mouse and the wire connected to it. You can also connect wireless mouse to see if it is recognized.

Here are some further steps for uninstalling and re-installing drivers for Windows 7:

Click Start button, Right click Computer, click manage, click Device manager, double click mouse and Right click on the mouse model. Choose property and then choose the driver tab to have all options for Update driver, Uninstall, Roll back Driver etc.