OK, anyways, de-hijacking the thread:
Yes, I am almost positive that my cable is genuine, I got it from sparkfun and they say it is an original Rev Ed product, same with my picaxe. It's the serial cable, not USB, and it is a true COM port. I have no software that checks the serial port (almost positive about that) and that doesn't really make sense anyways as it was Pin 2, the Picaxe serial out. How does the flashing fit with the wrong voltage levels? I thought that the flashing was the chip checking for downloads...
Should I try another computer?
OK, I just fully tested the serial connection. When I do a firmware check, it stops blinking after I click the mouse until the "not detected" dialog comes up, and then comes on dimly (I assume because it's transmitting data) for a couple seconds and flashes bright for a second and goes back to sporadically blinking. Really, really wierd.