Parul's problem was :
I have a Microsoft Intellimouse (2 buttons) which is serially connected to DOS COM1.
Whenever I run KDE, the mouse does not respond but it does change its icon depending on what is positioned underneath it. For example, while on the desktop, it looks like a pointer but when xterm is running, it changes to an "I" bar.
Parul you need to run "mouseconfig" command (without the quotes) and select Microsoft Intellimouse ver 2.1 or higher from the menu. Your mouse will begin to work then I feel. Also check emulate three buttons at the bottom. The selection is necessary because intellimouse expects wake up signal from the OS in order to function and move on the screen and the above driver performs this function whereas the generic 2 button driver that you are using doesn't have this feature