Try using the script configuration (I forget which option (#3 I think)) for X instead of the gui or ncurses based tools. This fixed the issue on the 5.1 install I was playing with a few days ago (be sure to specify "/dev/sysmouse" and "auto" as Daniela suggested when doing this as well).
Yep, this suggestion worked! I set it to auto and X was happy again. Thanks all. :)
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