i have been bug hunting in X in connection with [EMAIL PROTECTED] event interface (available with 2.6 kernel) and his X driver to that, which is in experimental.
the problem was that the "button depress" event was deferred untill the "button release" event occured. as a consequence, everything which had to to with dragging the mouse (marking text, moving windows...) did not work. i followed the signal through the layers and the deferral happend in the Emulate3Buttons section, where the events are generated. i think that was in ./xc/programs/Xserver/hw/xfree86/common/xf86Xinput.c the problem does not occure if the Emulate3Buttons optionis not specified in the config file. everything works as expected. it would be good if this was documented somewhere, and if someone else could varify that this works as described above. Zephaniah and me are both not sure why this is not triggered with normal mice drivers, too.