It's not using -mouse, because input hotplug is enabled which makes it
use -evdev (so that part of xorg.conf is skipped). Try on lucid alpha1
livecd if it's any better. Looks like a kernel problem though.
** Package changed: xserver-xorg-input-mouse (Ubuntu) => xserver-xorg-
input-evdev (Ubuntu)
** Changed in: xserver-xorg-input-evdev (Ubuntu)
Status: New => Incomplete
--
bluetooth mouse fails to reconnect
https://bugs.launchpad.net/bugs/458781
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