I did excatly what timedsmith said. But it didn't work for me. In that file there is nothing like "Core pointer's input device Section". But there is options for mouse. It says Option "Protocol" "PS/2". I changed that to Option "Protocol" "IMPS/2" and at the end of it I also added the Option "ZAxisMapping" "4 5" part. But it still dosent work. I'm using mdk9.2 .
This is what my XF86Config-4 looks like. Look for the 2 changes marked with @@@@ sign.
# File generated by XFdrake.
# **********************************************************************
# Refer to the XF86Config man page for details about the format of
# this file.
# **********************************************************************
Section "Files"
# Multiple FontPath entries are allowed (they are concatenated together)
# By default, Mandrake 6.0 and later now use a font server independent of
# the X server to render fonts.
FontPath "unix/:-1"
EndSection
Section "ServerFlags"
#DontZoom # disable <Crtl><Alt><KP_+>/<KP_-> (resolution switching)
#DontZap # disable <Crtl><Alt><BS> (server abort)
AllowMouseOpenFail # allows the server to start up even if the mouse doesn't work
EndSection
Section "Module"
Load "dbe" # Double-Buffering Extension
Load "v4l" # Video for Linux
Load "extmod"
Load "type1"
Load "freetype"
Load "glx" # 3D layer
Load "dri" # direct rendering
EndSection
Section "DRI"
Mode 0666
EndSection
Section "InputDevice"
Identifier "Keyboard1"
Driver "Keyboard"
Option "XkbModel" "pc105"
Option "XkbLayout" "en_US"
Option "XkbOptions" ""
EndSection

Section "InputDevice"
Identifier "Mouse1"
Driver "mouse"
Option "Protocol" "PS/2" @@@@CHANGED THIS TO - Option "Protocol"IMPS/2"@@@@
Option "Device" "/dev/psaux"
Option "Emulate3Buttons"
Option "Emulate3Timeout" "50"
@@@@ADDED New Option@@@@
EndSection
Section "Monitor"
Identifier "monitor1"
VendorName "Plug'n Play"
HorizSync 30-70
VertRefresh 50-160
# Sony Vaio C1(X,XS,VE,VN)?
# 1024x480 @ 85.6 Hz, 48 kHz hsync
ModeLine "1024x480" 65.00 1024 1032 1176 1344 480 488 494 563 -hsync -vsync
# TV fullscreen mode or DVD fullscreen output.
# 768x576 @ 79 Hz, 50 kHz hsync
ModeLine "768x576" 50.00 768 832 846 1000 576 590 595 630
# 768x576 @ 100 Hz, 61.6 kHz hsync
ModeLine "768x576" 63.07 768 800 960 1024 576 578 590 616
EndSection
Section "Device"
Identifier "device1"
VendorName "ATI"
BoardName "ATI Radeon"
Driver "radeon"
Option "DPMS"
EndSection
Section "Screen"
Identifier "screen1"
Device "device1"
Monitor "monitor1"
DefaultColorDepth 16
Subsection "Display"
Depth 8
Virtual 1024 768
EndSubsection
Subsection "Display"
Depth 15
Virtual 1024 768
EndSubsection
Subsection "Display"
Depth 16
Virtual 1024 768
EndSubsection
Subsection "Display"
Depth 24
Virtual 1024 768
EndSubsection
EndSection
Section "ServerLayout"
Identifier "layout1"
InputDevice "Keyboard1" "CoreKeyboard"
InputDevice "Mouse1" "CorePointer"
Screen "screen1"
EndSection