Windows 7: Steelseries Xai not recognized byWindows 7

Recently purchased a xai mouse from steelseries. I plugged it in and windows stared to automatically install the drivers. When it's done I try to use it, it won't track and none of the buttons work, but all the lights are on. I then downloaded the software from the steelseries website for this mouse, it could tell whether the mouse was connected or not. After changing a few settings I tried to use it and the mouse would still not track, but the buttons worked. I can't find this mouse in device manager. Any ideas/other people have this problem? I've already contacted steelseries for support, it has been... slow.

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There are known compatibility issues with certain motherboards:
FAQ - SteelSeries - My computer gets stuck at BIOS stage during the boot for a few minutes when the Xai is connected..
Your motherboard may not be on the list, but the issue may affect it.

It may need to be reset:
FAQ - SteelSeries - I'm experiencing issues with the software/firmware on my Xai. Is there a way for me to reset the mouse?

More:
REVIEW: Steelseries Xai | QuakeWorld.nu