Can't answer your first question, as I use KDE.
I have Windows on my second hard drive, this is how I configure Lilo to open it:
# Linux bootable partition config begins
image = /boot/vmlinuz
root = /dev/hda1
label = Slackware10.2
read-only
# Linux bootable partition config ends
# Windows bootable partition config begins
other = /dev/hdb1
label = win98
table = /dev/hdb
map-drive = 0x80
to = 0x81
map-drive = 0x81
to = 0x80
# Windows bootable partition ends
I use mc to put this in /etc/lilo.conf, and this will give you the choice of selecting windows regardless of what drive it is on.
About the wheel/roller mouse: this question has been asked and answered many times; use the search function for this forum.