Bluetooth Mouse Problems

I have a Dell XPS14 which I like very much. One of its shortcomings, however, is a limited number of USB ports - 2. In order to alleviate this problem, I have acquired a Microsoft Arc Touch Bluetooth Mouse. Unfortunately, I am having problems getting it installed. I go through the pairing process, which is not smooth at all. Afterwards, if I try to use the Microsoft Keyboard and Mouse software, it doesn't see the Bluetooth mouse. Furthermore, while the mouse will work for a short while after it has been paired, the connection is soon dropped and is impossible to restore. So, I have to remove the device, restart, and go through the pairing process again. By the way, my OS is Windows 7 x64.

Anybody have any ideas. I looked for a new driver for Bluetooth, but I am unable to find anything. I am unable to tell if this is a Dell issue, a Microsoft issue, or a Qualcomm Atheros issue.