i had this exact problem
i could turn on the track pad of my powerbook and move the pointer with that and use bluetooth mouse to click.
the bluetooth mouse would pair perfectly fine with the powerbook.
i took it to an apple store and they took out another mouse, paired it, it worked fine, and then they gave me a new mouse. the new one has been working perfectly fine. using it right now.
btw. i was just using mine the day i got it and it died. i was in garageband, i clicked, and after that it never moved again.