This was discussed in another thread, but I'm too lazy to find the reference. The conclusion was that the kernel does support mice (at least bluetooth mice, if hidd is running), but the X server (i.e. X windows) does not. The server does have a tantalizing "-mouse" option, but it doesn't work. So while a program can theoretically read mouse events itself, mice just aren't useful, at least not until someone builds a new X server that supports them.

Cheers, Lon

P.S. If there is some magic that enables mouse support in the server (i.e. if the above is wrong), then I would very much like to know what it is.