I had the same problems with the xorg upgrade, so I got some good
advice on the xorg mailing list.
The big picture first: The plan is to use evdev *instead* of the
drivers in xf86-input-keyboard and xf86-input-mouse, and to make
any Input Device sections in xorg.conf completely go away (at least
for mice and keyboard; not sure about tablets, joysticks etc).
In my xorg.conf there is no mention whatever of mice or keyboards,
and xf86-input-keyboard and xf86-input-mouse have been completely
deleted from my machine. (xf86-input-evdev is still necessary, of
course.)
You must have "Event Interface" enabled in your kernel config file,
obscurely located in "Device Drivers-->Input device support". This
step will result in /dev/input/event* after you reboot your new
kernel.
If you have an unusual mouse, as I do, you will need to create a
new fdi file in /etc/hal/fdi/policy/ to get it working properly.
I finally figured out the format for my new file by studying
/usr/share/hal/fdi/policy/10osvendor/10-x11-input.fdi. For non-
us keyboards you might want to look at 10-keymap.fdi.
I named the new file 10-x11-logitech.fdi, and here it is (but
watch out for linewrap:
<?xml version="1.0" encoding="ISO-8859-1"?>
<deviceinfo version="0.2">
<device>
<match key="info.product" contains="ImExPS/2">
<merge key="input.x11_options.EmulateWheel" type="string">true</merge>
<merge key="input.x11_options.EmulateWheelButton" type="string">8</merge>
</match>
</device>
</deviceinfo>
The xml above replaced these deleted lines in my xorg.conf:
Section "InputDevice"
Identifier "Mouse0"
Driver "evdev"
Option "Protocol" "auto"
Option "Device" "/dev/input/event4"
Option "Emulate3Buttons" "True"
Option "EmulateWheel" "True"
Option "EmulateWheelButton" "8"
EndSection
Notice that evdev doesn't need to be told which device to use :o)
What? You couldn't figure all of this out by reading man pages???