I have the same issue. Used unetbootin usb flash drive to install 9.10.
Same thing happens in livecd now, first boot mouse buttons worked 90% of
installation now they don't work at all except right mouse button
randomly. Touchpad and external usb mouse do the same thing.
Acer aspire 5100.
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Adding to comment #45: update-manager was updated as of 01-05-10 but
didn't try install ati/amd graphic drivers. gksu 100% gives couldn't
grab mouse error also. Tried reinstalling libgksu2-0 but that didn't
help.
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Touchpad and mouse buttons not working after upgrade from Ubuntu 9.04 to 9.10
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