The microsoft drivers are normally best but there seem to be two different default mouse drivers in Win 7. One is "USB wheel mouse optical" in device manager that works for me but I use cheap mice. Not sure what the other was when I had problems. Remove any duplicate or unknown HID devices in device manager and reboot. Remote controls can mess up your configuration, possibly requiring a clean install.
I concede it may help to reinstall my OS, but I'm just not willing to do that right now.
Anyway - it's not just my mice that cease working with the BIOS update. My Kindle stops working, and so does my USB sound card.
It seems very strange to me that a BIOS update should require me to reinstall my OS - which is why I don't have the energy to perform the experiment.
I take pride in how long I can go without reinstalling an OS myself. I have seen devices interfere with driver installs following OS install. Even if not detrimental it is best not to have anything not required, such as a USB drive used to transfer drivers, removed. The Kindle and USB sound card should probably not be present when updating the BIOS. The easiest solution would be to try a newer BIOS without those items present.
This board has serious BIOS issues and intel wont be fixing them any time soon.
There intention is to EOL the board soon and only fix issues that affect all windows users until it is EOL'd.
You can't install a custom BIOS that fixes these problems because they don't want you to and despite their claims you can't create your own BIOS and install it cause they wont allow that either so your screwed.
Basically you have a board that is plagued by a bad BIOS and a company that doesn't seem to care and there is no legal options for you to do anything about it.
The only option I see is joining the underground BIOS network and getting it fixed using stolen tools or tools obtain through questionable channels and it is sad that intel forces you to go this route.