Bluetooth Keyboard and Mouse won't work

I have a Desktop Elite for Bluetooth. I have just reinstalled it and it
seems to install fine, Bluetooth devices show it, Keyboard exchanges a
passkey. Then, neither work! The mouse no longer is on the Bluetooth
devices list and the keyboard is but does not work.
The only major change I have made is installing service pack 3 recently.
The transceiver appears to work fine and is noticed.
One thing I noticed is that when I look at the properties and get to the
services and try to start them, I get an Access Denied type of message.

[ScrabbleVoice]

I am having the exact same problem, only on XP pro SP2... any ideas?

[ScrabbleVoice]

Finnegan,

I found the solution, although I think this will be moot since your post was from 2008 :)

Find the Bluetooth Support Service (from Run, go to services.msc to open up the Services console).

Go to the Log On tab from the Bluetooth Support Service properties, and click to have it log on as System. Then, restart the service. Try installing the keyboard/mouse now. Worked like a charm for me!