Problem : After installing Ubuntu 12, the mouse stopped working.
Solution :
# Open the Terminal:
cd /etc/modprobe.d/
gksudo gedit options.conf
#In the text editor, type:
options psmouse proto=imps
#Save the file and close it.
# Back to the Terminal:
sudo modprobe -r psmouse
sudo modprobe psmouse
# Click Fn + F7
# Disable and enable the mouse again.
Reference :
Good luck,
Ahmed Bani