Alright, thanks guys, have the whole system up and running now....all I need to do now is get rid of my stupid Win-Modem and get a regular modem.
THe mouse thing sorta fixed itself. Here is what happened:
I got sick of the issue, so I borrowed my dad's PS/2 mouse, plugged it into my PS/2 port. I did this just to make sure that none of the mouse drivers in Linux were toasted. Well, that checked out alright. SO, I rebooted the machine, removed the PS/2 mouse, and out of habit I just plugged my USB mouse back in. On boot-up Linux went into the "hardware updater" program, Kadzu or what not, and it found my USB mouse. I'm sitting here like "HUH, didn't do THAT before, let's see what happens". Well, booted up, logged in, started Xwindows, and *POW* the mouse works like magic now! I changed NOTHING in the config file, no protocols or anything!!! LOL, guess it just needed to be unplugged and plugged back in! I guess there was another config file somewhere that just needed to be updated or something, I'm not sure, nor do I really care to mess with it because it isn't broke anymore.
Again, thanks for all your help.
p.s. if anyone has an old 56k modem that they don't want anymore and are willing to cough up for cheap I'd greatly appreciate it! LOL