If you plug a usb cable in to it instead of the nano transceiver, does it act like a wired mouse ?

No. The receptacle for the nano-tranceiver is only a storage space so that the two pieces of the unit are easy to keep together when not in use.

Is this supported by Windows 8.1?

I'd have to add that now that I have one of these, I need to say that I just tried this mouse on my Windows 10 64 bit Professional, and it works like a charm!

Questions & Answers: Microsoft 3500 GMF-00175 Flame Red Gloss BlueTrack Mouse

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Microsoft 3500 GMF-00175 Flame Red Gloss 1 x Wheel USB BlueTrack Mouse

Ambidextrous Use (Both Hands)
BlueTrack Wireless

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