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I am using a Microsoft intellimouse PS/2 and an STB Velocity graphics card (riva128, 8 mb). All hardware is from Dell. The mouse functioned flawlessly in RedHat 5.2 with XFree86 3.3.3-1, including scrolling with the mouse wheel. Upon upgrading to RedHat 6.1, the following started to happen. When I log out of my window manager, if I move the mouse while the system is switching into xdm, the pointer zooms to the right top corner of the screen and stays there. The only way for me to regain the use of my mouse is to move the mouse wheel up a notch (!) :). This does not happen if I keep the mouse still during the logout process. Adding various things to my XF86Config file, such as "sw_cursor", made no difference. I suspect the problem is with XFree86 3.3.5 nvidia riva driver. This is not a severe problem, since no other application seems to be affected, just annoying every time it happens. One obvious solution is to downgrade to XFree86 3.3.3-1.
mouse handling has been tweaked for 3.3.6. When it is available, please test again and see if the problem has been resolved. If not, reopen the bug and we'll dig deeper.
The bug persists with XFree86-SVGA-3.3.6-11.i386.rpm. Needs to be reopenned. Once again, XFree86 3.3.3-1 is working fine.