Hi,
Thank you for posting your issue on Microsoft Community Forums.
From the issue description, I understand that you are unable to use horizontal and vertical scroll with Sculpt Touch Mouse.
Let me go ahead and help you with the issue.
As you informed that the IntelliPoint software is updated, but sometimes the Sculpt mouse drivers might be outdated which is causing this issue.
Here are a few methods which you can follow to resolve the issue:
Method 1:
I would suggest you to refer to the link and follow steps given in the article:
Install mouse and IntelliPoint software
http://support.microsoft.com/kb/258785#top
Method 2:
Download and install the drivers from the link:
http://www.microsoft.com/hardware/en-in/d/sculpt-touch-mouse
Also refer:
http://www.microsoft.com/hardware/en-in/help/support/how-to/mouse/use-sculpt-touch-mouse
Hope this helps. If you have any further queries/issues related to Windows, write to us and we will be glad to assist you further.