Magic mouse no longer recognized

Hello everyone,
I have my 2009 mac pro about 13 feet away from my keyboard and magic mouse, and though it would connect via bluetooth, it was very laggy and at times unresponsive, so I purchased an IOGEAR GBU421, plugged it into my USB hub that sits next to my keyboard, and its been working GREAT for the past 5 months! However today the mac does not recognize the magic mouse when using this bluetooth adapter.
Of course I replaced the batteries, repaired disk permissions, even removed the magic mouse from my bluetooth devices, and it still wont connect with the IOGEAR, regardless of if its plugged into the USB hub, or the mac directly. I then tried connecting the mouse via the mac's built in bluetooth, and it works fine.
I dont know whats going on! I've contacted IOGEAR and they say its "probably a conflict with the bluetooth on your mac." They are willing to exchange the unit, but before doing that I'm wondering if there is anything I can do on my end to see if its indeed a conflict with the bluetooth on my mac.
Thanks!

I can suggest you try the standard simple techniques usually posted to questions like this by trying a smc and pram reset.  If those don't work then here's my usual reply to this situation, i.e., reset the BT back to "factory settings" and try to re-pair.
Incidentally I also use a IOGEAR GBU421 (plugged into the back of my 27" ACD) and have been since last Christmas when I bought it on sale at Fry's.  It works although about maybe 15 to 25% of the time my mac pro is a little slow reacquiring it after waking from sleep.  In those cases I have to flip the mouse switch to essentially tell my machine "look over here stupid" :-)

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