It's not your mouse, it's Logitech and their flaky WinXP drivers. Try enabling MS Office Compatibility mode in the mouse settings under control panel and see if it fixes your problems.
I found this info on Logitech's page after doing some digging.
<< MouseWare sends wheel messages in one of two ways: Scroll Bar messages and Office Compatible messages. As the MouseWare program EM_EXEC is running, it sends Scroll Bar messages while the drivers send Office Compatible wheel messages. If EM_EXEC is disabled, the drivers will continue to send Office Compatible wheel messages. Disabling EM_EXEC has the same effect as selecting ?Use MS Office Compatible Scroll Only? in the Logitech Mouse Properties box.
When you use the mouse in an application that doesn?t support Office Compatible scrolling, EM_EXEC will send scroll bar messages. This is the same as manually clicking on the scroll bars. >>
So, according to this, you can either disable EM_EXEC or enable MS Office Compatibility mode. Hope this helps 🙂