Update: I do have this problem - it comes and goes. I think its related
to the X server or something, because I found out that I can "fix" it by
changing to a text console and then when I return to X the mouse is
working.

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Bluetooth mouse connection in Karmic not working at startup and drops when 
resuming from a low power state
https://bugs.launchpad.net/bugs/342447
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