Hi, I had the exactly same issue on a debian 5.0.4 installed on a iMac. I solved it by adding the options CorePointer and Device to the InputDevice section:

--- xorg.conf.20100427143046    2010-04-27 14:30:46.000000000 +0200
+++ xorg.conf   2010-04-27 14:40:41.000000000 +0200
@@ -25,6 +25,8 @@
 Section "InputDevice"
        Identifier      "Configured Mouse"
        Driver          "vmmouse"
+       Option          "CorePointer"
+       Option          "Device"      "/dev/input/mice"
 EndSection

 Section "Device"


.a.

--
Antonio Messina
System and Network Administrator

email: amess...@ictp.it      |  The Abdus Salam ICTP
phone: +39 040-2240-691      |  Strada Costiera, 11
fax:   +39 040-2240-7691     |  34151 Trieste, Italy

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