PC Peripherals Logitech MK320 wireless keyboard - works in XP, Linux but not in Win 7

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I recently purchased a Logitech MK320 wireless kbd/mouse combo. It works out of the box on my desktop in Win XP & Ubuntu 10.04. I have Win 7 also on the same desktop. The mouse and keyboard just fail to work in win 7. The USB receiver is not getting installed properly in Win 7.

In device manager I see this:
Other Devices -> USB Receiver
When I open the properties for this device:
"Device Status: The drivers for this device are not installed. (Code 28). This operation requires an interactive window station."

I tried "Update Driver software" option, but hit this error:
"Windows encountered a problem installing the driver software for your device. Windows found driver software for your device but encountered an error while attempting to install it. USB Composite device. There is no driver selected for the device information set or element"

I have been trying to get this working for the past day & am on the verge of returning the device back. Since it works in XP & Linux on the same machine, it definitely is not a hardware issue. I have tried connecting to other USB ports on the desktop as well. It doesn't work in Win 7 safe mode as well. However if I hit F8 and go into the Win 7 Repair mode, the mouse and keyboard work.

I have Win 7 SP1 installed & have all updates (post SP1) applied.

Suggestions?
 
Im using it with win7 64bit - worked out of the box.

Have you tried installing Setpoint? Is plug n play active on your OS? check the bios too.

It should show up seperately under KB and Mouse in the device manager.
 
Nope, I dont have Setpoint installed, as the logitech website says it isn't needed for MK320. When I try to update the drivers for the device via Device Manager, Windows identifies it as a "USB Composite device" & the driver installation fails for some reason. What do you see in Device manager for MK320? You mentioned it is listed separately in the Mice & Keyboard sections. Is there anything listed in the USB section in Device Manager as a "USB Composite device" ?

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@surya_neo - How does one install in compatibility mode? Logitech does not have a separate device driver for this device, they recommend using the default Win 7 driver.
 
right click on the setup.exe and select Compatibility tab and select windows xp sp2 or sp3 and try installing it...
 
I have 3 USB Composite Devices dono which is which, under human interface device again there are 3 usb input devices im guess 2 for these and 1 xbox controller.

I wanted to modify the extra buttons on the KB and hence installed setpoint which doesnt even detect my kb/mouse in its interface. I think u shld try installing it anyways?

--- Updated Post - Automerged ---

random idea but have u tried plugging it in diff usb slots? back/front, win7 shld detect it auto : /
 
@saumik_ - Thanks for sharing this information. I did try plugging the receiver into other USB ports on the M/B, no luck though. I have emailed Logitech support.

--- Updated Post - Automerged ---

Finally got it working. Let me document what I did, in case others run in to the same issue. I installed another copy of Windows 7 in a VM (Virtualbox). I copied all the C:\Windows\inf\usb* files from my VM over to my original copy of Windows, overwriting them in the process. I uninstalled the "USB receiver" in Device Manager and removed the device from the USB port. Deleted INFCACHE.1 (you will need to take ownership/full access before it allows you to delete the file) file from C:\Windows\System32\DriverStore. I rebooted the system. I plug in the wireless USB receiver device & it once again fails to install. I copy the C:\Windows\System32\DriverStore\FileRepository\usb* folders from my VM Win 7 over to a temporary location (lets say C:\tmp) in my original Win 7. Go to device manager and select "Update Driver Software" for the "USB receiver" device. Select "Browse my computer for driver software". In the next screen point the path to where you copied the files mentioned in the previous step (In my case C:\tmp). Select "Include subfolders" & hit "Next". Win 7 now asks for a confirmation, stating that the driver is not signed, go ahead and install the unsigned driver. Thats it, the system then recognized the "USB composite device", setup a "HID Keyboard device" & "HID-compliant mouse". So for some unknown reason, my USB drivers were borked. Not sure how that happened probably one of the windows updates caused it.
 
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