Quote:
Option "Device" "/dev/input/mice"
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Um, no. I am suprised that xorg even starts with this in there. At the very least, it will be screaming about it. When things don't work, first check the logs, and the console output. (/var/log/xorg.0.log)
/dev/input/ is a linuxisim. As you are using moused, the correct device is /dev/sysmouse.