ps2 mouse not working but touch pad does

[Rehan Anis]

I have a dock station for my laptop which has additional ports.
I have dual boot windows 7 and ubuntu 12.04 Beta (upgraded right now from 11.10 because of the same problem).
The same mouse is working fine under windows 7, while in Ubuntu, it worked for the first boot with mouse plugged in, after that, it does not work at all, only the light under it works (its a hp optical mouse) to show it is detected by the computer, and also suggested by the following commands and their output.
~$ xsetpointer -l | grep Pointer
2: "Virtual core pointer" [XPointer]
4: "Virtual core XTEST pointer" [XExtensionPointer]
13: "SynPS/2 Synaptics TouchPad" [XExtensionPointer]
14: "PS/2 Generic Mouse" [XExtensionPointer]

Now I don't know how to resolve this problem.

Please note that previously I have USB optical Track Ball, Which I replaced with this Hp Optical Ps/2 Mouse.
It worked for the first boot only in Ubuntu 11.10, after that nothing seems to work.

ProblemType: Bug
DistroRelease: Ubuntu 12.04
Package: linux-generic 3.2.0.23.25
ProcVersionSignature: Ubuntu 3.2.0-23.36-generic 3.2.14
Uname: Linux 3.2.0-23-generic i686
AlsaVersion: Advanced Linux Sound Architecture Driver Version 1.0.24.
ApportVersion: 2.0.1-0ubuntu4
Architecture: i386
AudioDevicesInUse:
 USER PID ACCESS COMMAND
 /dev/snd/controlC0: anisrehan 2469 F.... pulseaudio
Card0.Amixer.info:
 Card hw:0 'Intel'/'HDA Intel at 0xf4700000 irq 47'
   Mixer name : 'Analog Devices AD1981'
   Components : 'HDA:11d41981,103c30a3,00100200 HDA:11c13026,103c30a3,00100700'
   Controls : 13
   Simple ctrls : 11
Date: Mon Apr 23 13:04:14 2012
HibernationDevice: RESUME=UUID=2514b7d4-04f6-44a9-82c3-47ab7bb4ac75
InstallationMedia: Ubuntu 11.10 "Oneiric Ocelot" - Release i386 (20111012)
MachineType: Hewlett-Packard HP Compaq nc8430 (RM150UT#ABA)
PccardctlIdent:
 Socket 0:
   no product info available
PccardctlStatus:
 Socket 0:
   no card
ProcFB: 0 radeondrmfb
ProcKernelCmdLine: BOOT_IMAGE=/boot/vmlinuz-3.2.0-23-generic root=UUID=f2b3e793-89cc-cc01-1032-e79389cccc01 ro quiet splash vt.handoff=7
RelatedPackageVersions:
 linux-restricted-modules-3.2.0-23-generic N/A
 linux-backports-modules-3.2.0-23-generic N/A
 linux-firmware 1.60
SourcePackage: linux
UpgradeStatus: Upgraded to precise on 2012-04-02 (21 days ago)
dmi.bios.date: 07/02/2008
dmi.bios.vendor: Hewlett-Packard
dmi.bios.version: 68YVD Ver. F.16
dmi.board.name: 30A3
dmi.board.vendor: Hewlett-Packard
dmi.board.version: KBC Version 40.19
dmi.chassis.asset.tag: CNU723239Y
dmi.chassis.type: 10
dmi.chassis.vendor: Hewlett-Packard
dmi.modalias: dmi:bvnHewlett-Packard:bvr68YVDVer.F.16:bd07/02/2008:svnHewlett-Packard:pnHPCompaqnc8430(RM150UT#ABA):pvrF.16:rvnHewlett-Packard:rn30A3:rvrKBCVersion40.19:cvnHewlett-Packard:ct10:cvr:
dmi.product.name: HP Compaq nc8430 (RM150UT#ABA)
dmi.product.version: F.16
dmi.sys.vendor: Hewlett-Packard