My problem has been solved. Turns out my mouse wasn't working becuase I was trying to connect a serial mouse to a PS/2 port (using an adaptor). But once I tried connecting a real PS/2 mouse, it worked.
As for interrupt 12, turns out that my BIOS was in Auto mode for PS/2 auxillary device support, so it only reserved it when it detected a mouse already connected to the PS/2 port during bootup. Now it even show up in /proc/interrpts. Thanks to anyone who made suggestions. Igor Get 250 color business cards for FREE! http://businesscards.lycos.com/vp/fastpath/