Hi swordlaw, welcome aboard.
Could you post the output of:
Code:
user@box:$ ls -l /dev/mouse
/dev/mouse should be a symlink pointing to the actual device. As you have a serial mouse (right?) it's possible that the link isn't pointing at the right device.
You could also try:
Code:
root@box:# cat /dev/mouse
Move the mouse and you should see a bunch of nonsense (random characters and glyphs) show up.