It was a common Windows driver issue years ago. Windows probably thinks the serial
device is a mouse, but it doesn't behave like a mouse.
Go into Windows "Device Manager" right-click on the USB GPS
and make sure Windows think's it's a serial
port, not a HID (human Interface Device). If it's showing up as an HID you need to go into Properties for the device and update the driver to change it to a serial port. You will need to have the proper driver for your GPS either on your hard drive or USB memory stick, or download it.
As to the bigger picture - this is a bug. There's a good chance there's a fix...
First thing -- I recommend you find a fast Internet
connection and update your system using Windows Update and then update your device drivers -- especially your mouse and GPS. Also check to see if there's a newer version of your computer's motherboard BIOS (check manufacturers web site for your specific model, call their Tech support if needed).