When Fedora Core 2 test releases jumped to 2.6.5, they horribly broke PS/2 support for certain brands of mice (this is a kernel 2.6.5+ issue, not FC's fault). Mine was affected and rather than downgrade, I bought a couple of PS/2 optical mice from
www.ebuyer.com (worked out to be 4.44 pounds each!) which worked fine with FC2 (and now FC3T1).
I was lucky that I wanted an optical mouse cos my home and work ball-driven mice were always getting bunged up with dirt. It's a "Chic" mouse - quite large compared to most mice, but I've got used to that. You may find that spending a few pounds/dollars might actually be easier than messing around downgrading kernels to fix a mouse issue.