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Two mice but three red touch points, can't click


I'm running Windows 7 and followed the installation instructions. I have two USB mice connected. As soon as I start Multitouch.Service.Console.exe, I get three red dots (in addition to the mouse pointer), two of which move with each mouse, but the third one not moving at all. The third point appears at the last mouse pointer position. When I check "Block native windows mouse input", the mouse pointer disappears, but I cannot click on anything.

When starting Microsoft Paint in this state, I get the following behavior: the Paint cursor is shown at the position of the third (immobile) red dot, and when moving either of the two mice, some lines are drawn around that position, but they don't get more than a few pixels away from that point, almost as if that third point was constantly issuing click events.

Any ideas what's going on?