That did it - with WiFi turned off the Bluetooth mouse works fine. 
I just purchased a Dell Inspiron 11 model 3147, which has the Dell 1707 WiFi and Bluetooth card installed.  The WiFi seems to work fine but I can not get Bluetooth to work properly.  Every time I pair a Bluetooth device it seems to pair correctly, but the device doesn't work.  I tried everything I can think of to get it working and no luck.  I have installed the new driver package from the support website, I have installed the updated BIOS and chipset drivers.  I even tried doing a factory reset to see if I had messed something up and that didn't help either.  When I first attempted to use Bluetooth last week after purchasing the computer, the paired devices would at least work for a few seconds and now they won't work at all.  Could the Dell 1707 card be faulty or is there something else that I can try?
Dell 1707 card Bluetooth connects to devices but devices don't work