I am still having trouble with the xorg.conf. I have a microsoft mouse that can be usb or ps/2. I have it set for ps/2 now and my config looks like this

Identifier "Mouse1"
Driver "mouse"
Option "Protocol" "IMPS/2"
Option "Device" "/dev/mouse"

When I type startx the x system fails. The error is "Cannot initialize core devices". The mouse does not show up. I also get an XIO: Fatal IOerror 104. I think this is due to my mouse too.

I have tried to set the Protocol to auto, with bot ps/2 and usb setup, but it also failed.

P.S. Mouse Fails to register on boot also.

the identifier should be "Mouse0" i think. see if that does anything.

also for my mouse the directory is
Option "Device" "/dev/input/mice"
might be different for ur distro, mine is FC5.