1

Raspberry Pi connected to TV via HDMI and powered by 5V, 750 mA adapter shows grains on the display and repeatedly reboots after showing the OS installation options. I have connected the Wi-fi dongle and a wireless mouse to the USB ports.

2

This is almost certainly a power issue. The recommended power supply is at least 1 amp and 2 amps is what is suggested for proper performance. Powering the mouse and WiFi via the Pi, might be possible with a better power supply, however, I would suggest a powered USB hub. A quick search of this site will show many WiFi related problems can be traced to insufficient power.

  • A WiFi/mouse should work on a 2 amp charger, but 1 amp might be pushing it. Those dongles (especially if the mouse is Bluetooth < 4) are really power hungry. – Jacobm001 Jan 31 '16 at 22:13

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