Not sure. I do not have enough experience with the Windows 7 drivers yet and absolutely do not have any experience with a touch pad. Does the manufacturer for the touch pad have later drivers available?
Every laptop I have seen switched to Windows 7 ran much better. Is this an older laptop? 1.6G of page file space being used seems high to me as well.
I do not know which drivers are running that mute light to know if there are newer drivers. The wifi light on the same pad alternates between orange and blue whether turned on or off, and that light works just fine. It's only the mute light that isn't working.
Its definitely not old, I bought it brand new in August, and to my knowledge it was still a rather new product.