Slow Mouse with Linux Kernel 2.6
The handling of the mouse has changed from Kernel version 2.4 to 2.6. The default configurations for the rate and resolution have changed when the configuration for your mouse can't properly be detected. You might notice that your mouse moves extremely slow. Anyhow, there's a real simple fix.
In my case, all i had to do was add psmouse_noext=1 when I boot the kernel. For instance, if you use grub then just edit /etc/grub.conf and add the option to the kernel boot line.