Does the mouse work fine on other surfaces?
I use one for comfort at my desk, I still use my G5 laser on the ice mat 2, I didn't like the feel of using my mouse on the cloth
I have one with a Microsoft 1.1A and it works perfectly (optical though).
It did smell like a new mousemat when it was a new mousemat, but now that it is an old mousemate it no longer smells like a new mousemat.
EDIT: Answering the original topic 8 months late, such is my styleeee...