why wont my iHome mouse work?

I just recently got an iHome mouse and when I plug the USB in it says "configure keyboard. Press SHIFT+A random to key to submit keyboard." and when I click cancel I cant get it to come back up and the mouse doesnt work at all. yes the mouse has batteries and the USB is plugged in as well as the mouse being on, I can see the red laser so I know it is on and supposed to be working.

P.S. I also tried looking in the bluetooth and it still would not read the mouse.