I tried to search for this in the forums (as I usually do) but all of the search results I found had mouses freezing due to different issues (I don't know what mine is, but I'm sure it's not the same as theirs).

I'm using a PS/2 Optical Mouse (not wireless) from A-Open, Model O-35G with 2 scrollwheels (although the 2nd one does exactly what the first one does, so there is no point to the 2nd wheel) and 5 buttons (one of my wheels is clickable). I defined it as a standard PS/2 mouse in the config when I was installing Linux and it worked. Then I installed iwheel and configured the scrollwheel to work. Everything is great except occasionally my mouse pointer freezes. Everything else still works, all the programs continue to run and my keyboard still works, so the only thing that freezes is the mouse pointer. So far everytime this has happened, it happened while I was in the middle of moving my mouse pointer. And unplugging it and replugging it back in doesn't help (like with the USB mice). However restarting X fixes this problem (without reboot or anything). I'm sure it's not iwheel causing it because this happened once before I downloaded iwheel. And in case this helps in any way here is my mouse config in XF86Config:
Section "InputDevice"
Identifier "Mouse1"
Driver "mouse"
Option "Protocol" "IMPS/2"
Option "Buttons" "5"
Option "Device" "/dev/mouse"
Option "Emulate3Buttons" "false"
Option "ZAxisMapping" "4 5"
EndSection

Do you actually use all the buttons on the mouse? if not try setting it to a bog standard ps2 mouse, if you do, check under setup at the command prompt and try stick in scroll wheel, i havent used rh in a long time so am unaware of the current driver support in for mice in there. but there may just be one that fits your needs