In terms of weird interactions / bugs, that’s pretty wild! 
This name “Microsoft Serial Ballpoint” is magic, because searching for that shows a lot of people having this same problem with USB serial devices:
The fix for this appears to be to disable Window’s support for crazy Serial mice entirely
##Warning! This fix involves editing your registry, make a restore point first!
###I have wrecked machines by goofing up a registry edit, you should really make a restore point first.
in regedit:
HKEY_LOCAL_MACHINE\SYSTEM\CurrentControlSet\Services\SerMouse
and change the value “Start” from 3 (load on demand) to 4 (disabled)
more info here:
http://www.curioustech.net/xport.html
http://support.microsoft.com/kb/103000
Thanks!
David