This error occurs if you are not using a PS/2 mouse. There is a setting in the BIOS to automatically detect a PS/2 mouse. Change the setting from "Auto" to a different option and the BIOS should stop sending interupts to the Operating System about not having a PS/2 mouse installed.
From a newsgroup post: "In my case this problem started to appear when I removed my PS2 mouse and installed an Intellimouse Explorer. In order to fix this problem I uninstalled Intellipoint 3.2, removed the entries for the USB explorer from Device Manager and unplugged the mouse. Plugged an old PS2 Intellimouse 1.1A in and installed IP3.2 and then uninstalled it all again (both the mouse and IP), reconnected my USB Explorer and reinstalled the IP3.2 software. It did log an error in the event log once about services.exe failing to load a system start or boot-time start driver, but then it worked fine. Strangely though, the light on the back of my mouse now stays on all the time, where as it used to go out completely and come on when I moved the mouse. Now the light stays on, and only the sensor light underneath illuminates when the mouse is moved. Oh well, at least it works".
From newsgroup postings: "Tt may be that the motherboard does not manage the PS2 port properly. See if there any problems reported by the Device Manager. You may also consider obtaining the latest firmware for your motherboard."
"You are using a serial mouse instead of a PS/2-style mouse" = ME164403