I had the same problem, with fedora 2 not recognizing my mouse, I lost my mind and after two days of working around the problem (which I did solve), some guy comes to LQ and posts a solution
So here it is.
Go to your BIOS (hit DEL at reboot)
Find a line somewhere that says USB Legacy support or something like it(USB Legacy).
Disable that. It should work fine after that.
Good luck!
Peace!