my p1 disk is the cd version, and i've got the dos version of p2.
I'm not sure about my mouse being USB but it and the stick did work fine when i used to have dos.
BTW...
I tried fiddling with some settings last night and for p2:
explore the cd any go to the properties of install and dark, go to the programs tab under properties and select "disable dos programs from detecting windows". that let me install it and doing the same method once installed let me play it, but only once i patched it.
But unfortunately it stuffed again this morning, so that method still is buggy and inefficient.