Toshiba A205-5867 laptop problem, USB doesn't work

I don't have the latest Knoppix release (I'm running 3.7). Does anyone know if a more recent version will boot on this machine (Toshiba Satellite A205-5867 laptop) AND be able to use USB devices?

During bootup, the laptop clearly turns on the USB ports, and the mouse appears to be functional (the LED lights up, and goes bright when moved). Once Knoppix reaches the boot: prompt screen, though, USB shuts off completely, the mouse LED dies, and nothing turns it on again.

Thanks!