Mouse enabling

Hi,

I have ported X server and matchbox on to my handheld with a USB port, When I connected a USB optical mouse to the USB the mouse doesn't work:
The mouse pointer appears on the screen, 
dmesg cmd also show that the system has identified the device (including details like manufacturer etc)
But the GUI doesn't respond to the mouse.
I even tried linking  ln -s /dev/usb /dev/mouse but wouldn't work

has anyone face this problem and any idea how to locate the issue.

Rgds
Suresh