Everytime I cradle my Axim X5 it knocks my USB mouse off-line. I can have the Axim on-line or the mouse, but not both at the same time. I have a powered 4 port USB hub, and I do not have any other USB conflicts except between these 2 devices.
sounds like a driver and/or usb bus voltage issue to me. Is this a relatively old system? Is the hub self powered?
Try new drivers if you can find them or just do what I do, don't load the mouse drivers that came with the mouse, the ones built into the os will support the mouse fine. I had bad problems with the logitech drivers under xp so I just stopped loading them and now I don't have mouse problems at all.