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sounds like it could be a bad mouse driver. but now I'm confused cause you mention a problem when simply installing winXP or win98.
remember, just cause the mobo recognizes that there's no mouse doesn't mean the socket is totally fine. strange machines these computers are.
I don't know though. One of your problems is indicitave of a hardware issue, the other a software issue. Check the driver and uninstall if necessary, letting it be replaced with the windows driver upon reboot, and like moose and johnny said, try another mouse or USB mouse.
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Until the 20th century, reality was everything humans could touch, smell, see, and hear. Since the initial publication of the charted electromagnetic spectrum, humans have learned that what they can touch, smell, see, and hear is less than one millionth of reality
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