I installed Red Hat 5.2 on an Intel server here that does not have a mouse attached (none of my servers do). I used to be able to select "no mouse" when it came time to configure the mouse, but now I _have_ to select a mouse type and specify what port it is on.
I can duplicate this, but chances are the fix won't get patched into 5.2. There *may* be an errata release of mouseconfig, but I doubt it. The fix is trivial -- simply remove /etc/sysconfig/mouse.
No mouse option has returned in mouseconfig shipped with 6.0
It appears that the "no mouse" option disappeared again in 6.1.
It's back again in the next release.