GPM is sometimes difficult to use with Xfree. So unless you need your "mouse" in the console i recommend uninstalling it. Most touchpads can be used with the PS/2 driver, like most modern mice. You might want to install "mdetect" and "discover" then re-run "dpkg-reconfigure xserver-xfree86" (the first two are helpers that should auto-detect your mouse and video board)
Greetings, Erich
