kudzu 0.97.4-1 tries to launch mouseconfig to configure a mouse, but I just see some text rapidly scroll by (I assume this was the mouseconfig help text, but it did scroll by pretty fast.) I would guess this is kudzu passing a bad command line to mouseconfig, but it's a pretty uninformed guess. Also, from the syslog I see that despite the fact that mouseconfig never actually ran, kudzu seems to think the operation was successful. Isn't that a bug, too? Mouse is USB (kernel also sees PS/2 mouse that's not there.)
OK, it was a problem with USB mice. Should be fixed in 0.97.5-1, may require a new mouseconfig.
*** Bug 29593 has been marked as a duplicate of this bug. ***
I'm having the same problem with a serial mouse. Kernel detects PS/2 port and when kudzu is enabled, the serial mouse doesn't work at all. When I disabled kudzu at startup, I've got the mouse running in X and console. I could not see any error messages from kudzu. By the way, mouseconfig-4.21 is broken. See bug 36077.