I have a similar problem. Everything is OK with X with config: Section "Pointer" Protocol "IMPS/2" Device "/dev/mouse" ZAxisMapping 4 5 EndSection
With gpm, I have tried type=imps2. No good, but... when switching off gpm (/etc/init.d/gpm stop) with that config, and relaunching it with type=ps2 in the config file (as I had it before trying to use the wheel), it works. Any ideas? Thank you! Antonio