Magic mouse doesnt work with new macbook air

Hey guys,
Just bought the magic mouse and it pairs just fine to my new 13" macbook air. But it only moves around and clicks and nothing else. Does not scroll or do any multitouch functions. I have checked all software is up to date and all settings are correct.
Thanks in advance.

I was having the same issues as Cawlin and called up AppleCare. They suggested resetting the PRAM, and then a SMC reset. That didn't work, so they had me do a re-install of the OS and system updates. None of that worked, and then it suddenly occurred to me that I had installed USB Overdrive a little while back and turns out that it was the culprit. A quick uninstall and everything's back to normal. The mouse preference panel is now displaying the correct options for the magic mouse. So if you have any 3rd party software for a mouse or keyboard installed, I would suggest uninstalling or disabling it and see if that does the trick.

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