OK - here's a bunch of responses...
AH - rc.gpm was already executable so chmod -x was benign. I agree with you - for now I have abandoned plugging the mouse into the keyboard and am using a native USB port first.
GRAZ - unplugging/pluggin in mouse and tail f /var/log/messges gave the following:
Apr 25 21:42:44 mr kernel: usb.c: USB disconnect on device 00:1d.0-1.1 address 19
Apr 25 21:43:08 mr kernel: hub.c: new USB device 00:1d.0-2, assigned address 20
Apr 25 21:43:08 mr kernel: input: USB HID v1.10 Mouse [Logitech Optical USB Mouse] on usb2:20.0
Yes, my mouse is a logitech optical usb. Obviously, did not get any of the CREATE lines that you show.
I may not have UHCI support, but not sure. here is output of my lsmod.
Module Size Used by Not tainted
snd-pcm-oss 36736 0 (unused)
snd-mixer-oss 12376 0 [snd-pcm-oss]
usbkbd 2936 0 (unused)
usbmouse 1880 0 (unused)
uhci 24284 0 (unused)
ehci-hcd 17516 0 (unused)
hw_random 2712 0 (unused)
i810_rng 2528 0 (unused)
snd-intel8x0 18304 0
snd-ac97-codec 58556 0 [snd-intel8x0]
snd-pcm 54344 0 [snd-pcm-oss snd-intel8x0 snd-ac97-codec]
snd-timer 13764 0 [snd-pcm]
snd 32772 0 [snd-pcm-oss snd-mixer-oss snd-intel8x0 snd-ac97-codec snd-pcm snd-timer]
soundcore 3396 4 [snd]
snd-page-alloc 4712 0 [snd-mixer-oss snd-intel8x0 snd-pcm snd-timer snd]
b44 13644 0
ntfs 51232 1 (autoclean)
ide-scsi 9392 0
keybdev 1892 0 (unused)
mousedev 4020 0 (unused)
hid 20868 0 (unused)
input 3200 0 [usbkbd usbmouse keybdev mousedev hid]
usbcore 59148 1 [usbkbd usbmouse uhci ehci-hcd hid]
agpgart 45508 7
tried the -t imps2 flag for gpm. Struck out as well.
xxd event0 through xxd event 10
none of them gave me the numbers scrolling around the screen.
Thanks to everyone for the help. At this point, I'm reduced to just making the usb mouse work when plugged into a native port (forget the USB hub in the keyboard).
Pretty disappointed because it seems like a common enough hardware configuration. Anyways, any other comments are always welcome and appreciated. In the meantime, I'll keep reading.