New 2010 mini won't complete boot out of the box

Never seen this before. I just unpacked a new unibody Mini and booted it up only to end up in a screen that shows a picture of what appears to be the underside of a mouse highlighting what I think should be the power button, and the spinning progress icon in the bottom of the screen. Powered down, unplugged all hardware except for monitor and still get to this point.
Looks like I get to do a fresh system install from day 1....lets hope the rest of my experience with this machine is better.

Word to the wise, the new mac mini won't boot if no mouse is connected. If you plug in a usb wire mouse, the system is supposed to detect this right away and continue the boot process. Mine won't do this.
Apple Care rep had me try the following all to no avail:
(1) remove power cord and other USB cords. Hold power button down for 10 seconds. Plug it all back in and reboot.
(2) zap the p-ram
Other tid-bit that is good to know. Apple treats the Mac Mini as a desktop which I was told means they do not want to do mail in support and instead want me to take the box to a support rep in my area, which in this case is not close. The support rep then put me on hold to see if they could do a mail in swap out since this did come to me DOA, and after about 10 min they set me up with a new one.

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