Don't think it could be a mouse driver problem since you already said that it stopped working which meant that the mouse was in fact working before under Windows 7 on your netbook. Based on this, here are some suggestions to resolve your unresponsive mouse problem. Basically, you are trying to determine if the problem is due to the mouse or due to the netbook....
1. If you have a wireless mouse, did you try replacing its battery with a new battery?
If the wireless mouse now works with the new battery, your problem is resolved.
2. If you have another laptop, did you try moving the unresponsive mouse to try it there?
If the mouse also does not work on the other laptop, then suspect the mouse is faulty.
3. If you have another mouse, preferably a wired one, did you try it on your Asus 1201N?
If the replacement mouse works on the Asus 1201N, then suspect original mouse is faulty.
4. Finally, just an observartion, the Windows 7 mouse driver expects a Microsoft mouse and if you click on Control Panel > Mouse, the Mouse Properties window will say No Microsoft USB Mouse Detected but this should not prevent the use of any generic mouse.
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