Uh, spend the $5 and get a new mouse. It's either that or the PS2 port on the board is dead... which would be more trouble to fix than it's worth. If a new PS2 mouse doesn't work, just use a serial ...
Last November, I wrote about how my Magic Mouse would repeatedly lose its connection to my Mac Pro. After some effort, I gave up trying to resolve it—and went back to using my reliable Bluetooth ...