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Do you use the same power hub with the Toshiba or are you plugged in directly?
Is the troubled machine a desktop or a laptop?

Try a different mouse?

This would seem to be the primary option. Most XP programs will just work and others require being installed in compatibility mode. Not many require the more cumbersome measures that you are...

The dongle plugs into the computer. Many bluetooth devices provide a storage dock for the dongle so that it doesn't get misplaced when not paired. I think it is safe to ignore that "bluetooth enabled...

I am currently using a wifi connected laptop with a 2.4GHz non-bluetooth mouse, though the mouse connects through a small USB adapter. I actually originally bought this mouse to work with my media...

Yup, the Alfa Realtek works great on a powered hub.

USB ports shut down when too much current is demanded. Those Alfa Realtek adapters require more current than can be supplied by one port. Did it not come with a Y-cable?
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I think maybe the feature you are looking for is "flyout menus" which can be enabled on the start menu, but I'm not sure about how to enable it on other folders, and I am not at an XP machine right...

If I understand this correctly, that's what the Quick Launch toolbar is for. It'll be listed among available toolbars when you right-click a blank space on the task bar. When the toolbar appears...

There might be something wrong with the optical drive. Have you tried a different boot disc?