RH 7.2; PS/2 mouse, keyboard freezing in X

[Y U Sasidhar <yusasidhar yahoo com>]

1. I have installed RH 7.2 linux using graphical interface; at this 
point both mouse (logitech 3 button ) and
keyboard work.
2. When I reboot  Kudzu informs that PS/2 mouse is removed from the 
system. I opt
for keeping mouse configuration.
3. startx gives kde desktop but keyboard and mouse do not work.
4. I removed mouse configuration file used mouseconfig to redetect and
configure mouse. It gives segmentation fault.
5. I experienced the same problem with RH 7.1 also.
6. I have absolutely no problem with RH 7.0
System: Celeron 400, 128 MB RAM having win98 and linux partitions
using lilo boot  loader
Pl advise.
--Sasidhar