Fixed! I had to download the current copy of the OS onto a new card. The one that came from canakit.com was either defective or an old OS.

Went to HP mouse. Still no good.

Mouse is OK on my laptop. Dim Red. But no light on pi. Also, No keyboard caps lock LED light. Green and Red lights in pi are solid on. Reseated card several times. It is suppose to preloaded, but maybe I should have a look from my laptop.

Would I be correct that the USB for the pi has no voltage? I have a LogiTech laser mouse and no light comes on. Do I need a powered hub? What kind of mouse is recommended?

Fresh out of the box with no keyboard or mouse (but powered up) should I see anything on my monitor?