Larswad: My scripts would never cause a reboot loop; but the old mouse driver made the N900 reboot when installed. Now that I don't use that driver anymore, there should be no problems installing or uninstalling my scripts.

augustthe: The libxmuu1 package is connected to the mouse driver. You might have too many repositories enabled, and one of them has a bad copy of that package that is not compatible. Try disabling all non-maemo repos.

obhishap: Are you running the watcher? Do you see a yellow banner appear when you connect the mouse?