No, you need the AC adaptor. Attempting to charge the mouse in an unpowered cradle is not recommended by the documentation. I suggest you send it back!

Would you mind telling us how you fixed it? ;)

Ah, there's something. What kind of headset is it? Is it just a microphone, or does it also come with headphones?

If it's a combo (with two leads), then you might find that the microphone will not...

What is your sound card? Are the input/output jacks colour coded? Which jack is the microphone plugged into? What program are you using the microphone with? Did you adjust the recording microphone...

I don't suppose there's any kind of warranty on this, considering you just bought it?

(if there isn't, might I recommend an external mouse instead?)

Well, Windows update will get you on the way to Service Pack 2. As for your motherboard chipset drivers, I need to know what PC you have - either the model or just the motherboard if you know it.

I didn't even know they made external SB Live!s - I thought it was only the Extigy. Are you sure you have an external sound card there?

Internal is the way to go for gaming on a desktop - far less...

How are you connecting it? Wirelessly? Ethernet? USB? Are all three connection types available?

Have you installed SP1 or 2 for your PC along with the motherboard chipset drivers? Otherwise, if you have a USB2.0 capable PC, then you probably don't have USB ports properly installed!

I would recommend either the Pioneer DVR-109 or the NEC ND-3520A.