Interesting COM port error

I’m using a serial to usb cord. I’ve tested the cord and it does work. About 18 months ago while running Windows XP I connected my ssc32 to my pc through the cable, and used the Lynx Terminal to get my servo moving. Due to lack of money, I’ve not touched it since.

Now on the same pc I have Windows 7 running. I’ve installed drivers for the cable again, and checked my device manager to show that it is indeed making a connection. The issue is whenever I plug my ssc32 into my computer via serial to usb cord, my mouse goes all wonky. What I mean is it acts like it’s battery is dieing. It reacts to my movements and clicks about 10% of the time. It is a microsoft wireless mouse and keyboard. As soon as I unplug the ssc32 cable my mouse goes back to acting normally.

I’ve also noticed when checking the device properties in my device manager, both COM1 and COM3’s baud rate is constantly jumping around.
http://i238.photobucket.com/albums/ff17/JavaMava/comissue.png
This is where I can see that, although when I took this picture I had the ssc32 unplugged so I could use the mouse. But I assure you the baud value was jumping through all the values what seemed at random.

Any ideas what could be causing this? How I could fix this?