Did you install the bare.i kernel or the usb one? You also probably have to configure your /etc/X11/XF86Config file for use with your usb optical mouse. You will most likely need to install the drivers for it as well if you haven't already. I don't use a usb mouse so I can't really tell you exactly what modules to use, but I know there's many threads here at LQ with USB mouse problems. A search for these threads will probably get you really good results. When you get the proper module (driver) names for your mouse, you'll need to do as root:
You'll need to edit your /etc/X11/XF86Config file with the proper protocol and options as well. If it's at all possible, please post your mouse section of your XF86Config file for us.
To get X running, you'll need to set it up. As root, in command line, type the following (if you haven't already):
This should get you well on your way to getting X to run. Keep us posted.