After unplugging and plugging in a USB mouse, the wheel is no longer acting like a button so you can't rotate a model?
Microsoft has some published articles regarding this issue. Typically this happens on laptops and is caused by a driver conflict between the track-pad and the external HID. Unplugging the external mouse and plugging into a new USB port will force Windows to re-install the driver and this should resolve the issue. Also, a clean boot has been known to resolve this issue.
Notes and References
OS Version: 764