The keyboard to the set is working great!! BUT the mouse refuses to work. The light on top of the mouse stays red and is blinking. I have tried new batteries, but he response is the same. The green power light on the bottom of the mouse is on and flashing also.. I have had to go back to my mouse with cord. Am I doing installation wrong or is the mouse a goner? 
Hi
,
Assuming the batteries were inserted in the correct position, this would indicate the possibility of a hardware defect. As this is covered by the warranty, your best option would be to contact Customer Support for further assistance (and possible warranty replacement).
