I have a TAG 3D optical mouse connected to the Laptop through USB drive.Once I right click on any Icon on the desk top, Windows installer starts installing Norton Antivirus. This I wish to stop.
2. Further, When I play games like Solitaire etc.. I am unable to drag the card.

The simplest explantion is usually the right one, so you MIGHT have a problem with your mouse. I would recommend just simply replacing it or installing updated drivers.

Some mice aren't compatible with certain systems. Are you using XP, XP SP2 or 3, Vista, anything 64-bit?

The not simple explanation is you could have a virus. Better run a system check!

The dragging issue sounds more like surface problems than anything. So to test this get a newspaper and move your mouse around on it(as a test not permanent solution) if you can drag things fine like that then replace your mouse pad. If your still having issues with dragging things check your mouse sensitivity settings in the control panel. And ofc as stated above check for updated drivers if both of those fail.