Faulty magic trackpad?

Hi. I have a brand new magic trackpad. If I turn it on the Mac detects it (as I can click) but dragging does not work at all. Is there a way of checking the drivers or some other set of diagnostics I can perform to see if it is me, the Mac or the Magic Trackpad that's at fault. (Before you ask, yes I have removed the packaging from the surface).

I have tried it with the wireless mouse off and with it on. If the mouse is on I can move the cursor with the mouse and I can use the trackpad to click and that works but I don't really want it to be just a big mouse button! None of the other functions work, it's only the single clicking on a surface.

Thanks, Will