Description of problem:

In /etc/rc.d/init.d/gpm there is the following:

        if [ -z "$DEVICE" ]; then
            DEVICE="/dev/mouse"
        fi

With a switch to udev one will be hard pressed to find
/dev/mouse.  There could be /dev/input/mice, or even /dev/mouse0,
or something of that sort, but /dev/mouse is not that likely.

To makes things more exciting my mouse on a console used to work,
and now gpm shows green "[ OK ]" on a startup, but it stopped working
despite the fact that I do have DEVICE=/dev/input/mice in
/etc/sysconfig/gpm and this is even a correct one.  It turns out
that the following piece of a code from a startup file is responsible:

if test -e /etc/sysconfig/mouse
then
    source /etc/sysconfig/mouse
    MOUSECFG=/etc/sysconfig/mouse
elif test -e /etc/sysconfig/gpm
then
    source /etc/sysconfig/gpm
    MOUSECFG=/etc/sysconfig/gpm
fi

and /etc/sysconfig/mouse was present on a system but with
no DEVICE defined in it.  Sigh!  If the above would be instead

if test -e /etc/sysconfig/mouse
then
    source /etc/sysconfig/mouse
    MOUSECFG=/etc/sysconfig/mouse
fi
if test -e /etc/sysconfig/gpm
then
    source /etc/sysconfig/gpm
    MOUSECFG=/etc/sysconfig/gpm
fi

then we would get at least the last definition instead of none.

Version-Release number of selected component (if applicable):
gpm-1.20.1-54

How reproducible:
Depends on what is in /etc/sysconfig (in mysterious ways if
you cannot read a shell code).