Try reinstalling your mouse hardware driver:
do these steps in console (init 3) no X plz
1. /etc/rc.d/rc.gpm stop
3. choose your mouse type
4. /etc/rc.d/rc.gpm start
5. move your mouse device and can you see your mouse pointer?
do steps 1-4 until you get the right configuration. And also try to get a good working mouse from your friend