Bluetooth Adapter Issue

I am using Windows 7 HP32. I have a Microsoft Keyboard Elite and Mouse for Bluetooth. Both worked flawlessly with XP. Since upgrading to Windows 7 they do not work. The Device Manager shows the Bluetooth Adapter and says it is working. Problem is, when I go to Add A Device, it just keeps searching and searching and never finds my keyboard and mouse. I have been through many forums and tried the following:

1) Replacing the batteries in Keyboard and Mouse and making sure they are discoverable.
2) Getting updated drivers
3) Uninstalling and re-installing
4) Made sure the Bluetooth service is started and set to start automatically.
5) Tried Win7 Driver from Broadcom.
6) Tried Bluesoliel driver

In frustration, borrowed a Bluetooth adapter from work and that didn't work so then I went and bought a brand new IoGear Bluetooth Adapter that says it is Windows 7 Compatible. When plugged in to my USB, Windows 7 immediately recognized it and installed drivers. Still when I go to Add A Device, nothing found. I then updated the drivers (from Broadcom) and sill nothing. To make sure it is was not the keyboard and mouse, to took them over to my laptop with built-in Bluetooth and it would pair with them immediately.

Based on the above, it seems to me that Windows 7 is having a problem using Bluetooth to pair with devices.

Any help is greatly appreciated. Thank you.

Thank you for your response. I am glad to hear that it is not impossible to get bluetooth to work with Windows 7, problem is I can't get it working. Yes I am aware that you have to press a button on the bottom of the mouse and keyboard during the pairing/discovery process and have been doing that every time I attempt to add those devices. I am also aware of the check box to make the computer discoverable. It is not checked on my machine and I thought that that was on for another device to discover your computer not for your computer to discover another device. I tried it and it did not make a difference.

Thank you.