I've also observed this behavior for kernel 2.6.7. The weird thing is that everything worked A-OK until i rebooted (after installing a number of packages through apt-get, including packages used by kernel-package and the Marillat mplayer packages) and then X just refused to start. The symptoms were just the same as for you guys, and adding psmouse to /etc/modules solved the problem. I guess I just wanted to say that I don't think this particular bug is quite resolved yet, but i also want to say a big Thank You for a quick and painless solution to what seemed to me like a very tricky problem! Cheers! /Joel Hedlund
