Try this:
login as root, and run xorgsetup and follow the prompts.
When you are done, go into graphical interface (kdm command) and your resolution should be right, and your mouse wheel should work.
I have a dell inspiron 1545 and a logitech lx3 optical mouse. I did the above and solved both problems. The only thing I haven't got is the horizontal scroll on my mouse wheel. Hope it helps.
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