This was so simple I don't really don't know what made me try it and I don't know if it will work for anyone else.
I ran comset and xf86config to set up my mouse and modem. Modem was fine but the mouse would do one of two things:
1) When set up as an MS mouse it would sit in the middle of the window and freeze.
2) When set up as a ps2 mouse it would go to the top of the screen and jump around uncontrollable, moving the mouse ball had no discernable effect.
BTW I have a Logitech Trackman Marble mouse.
I went into the xf86config file using mc. I went to the section input devices/pointer/protocol and manually changed it to "PS/2". It now operates like it's supposed to!
Hope this helps someone else.
For a better understanding I read "Configuring Your Mouse" at