kernel 2.6.2-1.85 horks both X and mouse

[Tim Quinn <tim quinn3 verizon net>]

Hi All --

I installed the latest kernel through up2date and rebooted.  Got a
message saying the graphical interface could not start because my mouse
was not configured properly.  Ran the mouse configuration and set it to
Microsoft Intellimouse PS2, which I am using.  Still no joy starting X
--- same message.

Switched back to 2.6.2-1.65 in GRUB when rebooting, and the mouse was
recognized and X came up just fine again.

Rebooted to kernel 2.6.2-1.85 and same sad story as before :(

Anyone have any ideas of what is going on and how to fix it?

Thanks,  tq