Windows 7 - HP L2105tm touchscreen monitor has no touch on laptop

I recently purchased an HP Compaq L2105tm touch screen monitor for my Dell Inspirion 1545 laptop running Windows 7 Home Premium 64-bit.
I have no problems getting a picture through VGA hookup. When I plug in the USB for the touch I get a notice that Windows is installing drivers and that it completed successfully and yet I don't have any touch capability.
HP website and drivers say that no drivers are needed on Win 7, that they use native drivers.
Called up HP tech support and they said the problems is on Dell's side, that Win 7 should have everything needed to make this work.
Called Dell up, rep remotely viewed my computer and told me they had a solution for $129 which I declined.
I spent over 3 hrs yesterday googling and reading forums for solutions to no avail.
I hooked up this monitor to my father's Dell desktop running Win XP and had no problems, great picture and full touch capability.

Any Ideas?

Thanks