I then discovered a forum post that revealed that my problem was actually hardware based:
I discovered that a small black spring loaded piece comes out of the side of the area where the usb connector rests to turn it off. The small black piece is pushed back when the USB connector (notebook receiver) is pushed into the mouse. The small black piece was sticking and not coming all of the way out. I took a cotton swab and alcohol and cleaned around it and took a small screw driver and pushed it in and out until it freely moved all of the way out which turns the light on and eureka, it worked!!!!
All I had to do was press the button a few times, and it became unstuck. This caused the light to turn back on, and the mouse started working again.