The InputDevice section tells Xorg what input devices you have, not which ones to use.
You've defined three of these. In the first section, “Mouse1”, in the second section “Mouse2”, and in the last section “Mouse” (as the same device as “Mouse1”). The names are completely arbitrary, and set by the “Identifier” parameter.
The ServerLayout section tells Xorg which of your input devices you want to use; you have “Keyboard1” (which you don't define here; you only define “keyboard”), and “Mouse1”.
In order to enable your other mouse, you need to add a line to enable Mouse2:
Code:
Section "ServerLayout"
InputDevice "Mouse1" "CorePointer"
InputDevice "Keyboard1" "CoreKeyboard"
InputDevice "Mouse2" "SendCoreEvents"
EndSection