i installed Mandrake 8.0....my ps/2 mouse works fine..
but after finishing installing...X cannot open
device /dev/psaux Device or Resource busy....

I have the same problem with my PS/2 mouse and haven't got a clue to what's causing the error. Also gpm fails with "device or resource busy" and "gpm.c(978)". I've tried connecting the PS/2 mouse to the serial port with an adapter, but still no luck. I'm using Redhat 7.1

Finally I found the error. Those damn IRQs. Had a soundcard taking up IRQ12. Did a rmmod on it and then the mouse worked...