I use a Logitech cordless desktop. When chosing "Microsoft IntelliMouse PS/2" and no "emulate 3 buttons", it stops working on the next screen. I use this configuration all the time, with the XFree from the 0223 snapshot (and earlier ones - no problems, except if I've been in Windows first)
The Intellimouse protocol is not going to work on a Logitech mouse. We inserted code to change the mouse protocol as soon as the user selected it, so that is why it stops working as soon as you change it. You will probably want to use the generic drivers for your mouse.
The mouse use the IMPS/2 setting in the XFree86, and it works well right now. (it is a "Cordless Wheel Mouse") IMHO, it should be used during the install as well, as this is the setting that can take advantage of the wheel - and the install is the only place I've seen a problem with it.