<< The X10 doesnt work with microsoft optical mouse! >>
That's strange...
The way X10 says to connect the mouse is mouse->X10 receiver->computer, so your mouse is not directly connected to your PS/2 port. This way sucks.
But using maX10 your mouse stays connected to the PS/2 port on your computer, and the X10 receiver connects to a serial port. So one would think that as far as your computer knows, the mouse is the same as it ever was, and there is just an extra serial device, which doesn't even show up in device manager.