It's in the right port for the mouse. Not sure what I have to do to make it work I tried input and pointer in preferences in workbench and they didn't seem to do anything.
If it's registering clicks, but not movement, assuming you've not got two duff mice, I would suggest plugging it into the other port, just to be sure. It may be that the positions pointed out on the box are incorrect...
Input and Pointer won't make any difference to what you want to do unless the mouse is plugged into the right port/working.