I have a similar problem. Debian Lenny, kernel 2.6.17. Here is my sources.list:
deb
http://ftp.uk.debian.org/debian/ lenny main contrib non-free
deb-src
http://ftp.uk.debian.org/debian/ lenny main contrib non-free
#
deb
http://security.debian.org/ lenny/updates main
deb-src
http://security.debian.org/ lenny/updates main
I did apt-get update; apt-get upgrade and this seemed ok but the X server failed with this error:
(EE) AIGLX: Screen 0 is not DRI capable
(EE) xf86OpenSerial: Cannot open device /dev/input/mice
No such file or directory.
(EE) Configured Mouse: cannot open input device
(EE) PreInit failed for input device "Configured Mouse"
No core pointer
I gather from an LQ post that the DRI error will not stop X working so the mouse error is the
important thing. I tried mknod /dev/input/mice c 13 63 and tried startx and the error changed to
(EE) xf86OpenSerial: Cannot open device /dev/input/mice
No such device.
(EE) Configured Mouse: cannot open input device
(EE) PreInit failed for input device "Configured Mouse"
No core pointer
so I was not much further forward. Like Fred, lsusb knows the mouse is there. And like Fred
I am a bit annoyed; all I did was an upgrade. This desktop has a second disk so I just cleared
the rubbish out of that and installed Debian Stable on it from an ISO CD. So I have a working
system again, with a mouse obviously, and after a few hours work I shall have all the applications back but I'd still like to know what was wrong. I still have the original system
on the first disk so I can do some diagnostic tests if you can suggest any.