Mouse middle click issues

[kidujp]

I have recently installed windows 7 Home premium X64 version, brand new clean installation(installed 2 days back), no antivirus s/w and no viruses or trojans either. Since the new setup, the middle button of my mouse does not respond like it used to(windows xp). Previously it acted like a normal middle mouse click, opening links in a new tab, but Now when I middle click all the windows that are open in the background gets moved to the foreground and pushes the foreground window to the background. The same thing happens whether I middle click in any browser or in another application.
These are the things I have tried :

1) Installed and uninstalled the mouse drivers multiple times.( Correct drivers are intalled)
2) Tried 4 different mice made by Microsoft(Sidewinder X8), logitech( MX performance and another generic USB mouse) and Lazer (lachesis) all with the appropriate driver and I see the issue in all 4 mice. Which concludes that it is a Windows issue.
3) The Middle button is set to middle-click in the control panel mouse settings.
4) Only other point of note is that I see 3 devices under mouse in the device manage :The first 2 are exactly the same, but appears twice and always shows up after a restart regardless of the brand of mouse I am using.
a) HID- complaint mouse (Microsoft driver : 6.1.7600.16385)
b) HID- complaint mouse (Microsoft driver : 6.1.7600.16385)
c) Logitech HID- complaint unifying mouse (current setpoint driver)

I use the middle click to open links in a new tab etc(doesn't work on links or anything in any browser now)

I am at my wits end here, Please help me.

 

[kidujp]

Figured out that a program that was installed on my machine KatMouse has a default option enabled which set the middle click to bring background windows to the foreground. Once I disabled that option, middle-click started working.

Adding this here to help anyone else who might come across this issue.