Ok, here's the config file. I've got RH8. Not sure why this doesn't work.

Section "InputDevice"
Identifier "Mouse0"
Driver "mouse"
Option "Protocol" "IMPS/2"
Option "Device" "/dev/psaux"
Option "ZAxisMapping" "4 5"
Option "Emulate3Buttons" "no"
EndSection

Section "InputDevice"
# If the normal CorePointer mouse is not a USB mouse then
# this input device can be used in AlwaysCore mode to let you
# also use USB mice at the same time.
Identifier "DevInputMice"
Driver "mouse"
Option "Protocol" "IMPS/2"
Option "Device" "/dev/input/mice"
Option "ZAxisMapping" "4 5"
Option "Emulate3Buttons" "no"
EndSection

Have you restarted your computer since you made those changes?

boy do i feel retarded. works now! thanks violator.

...and for those of you that enjoy long uptimes, just restart your X server or ctl alt bksp!