In response to Acid, this is definitely not a problem specific to Logitech mice, as I said earlier, a friend of mines mouse, which is just a little cheapy USB no name brand mouse displays the same issues, so solutions involving the Logitech Control Center software are a no-go for him.
And -DrD-, I have found that it depends on which mouse button I assign to a particular function that causes that function to die on a log out. For example, if I assign button 5 to spaces and button 4 to show desktop, I will loose show desktop on a log out, but if I assign button 4 to spaces and button 5 to show desktop, it is spaces that will die...
As an interesting side note, if my button is in a dead state, I can assign the dead function to mouse button 3 (the wheel button), log out and back in, and it will work, and can then be re-assigned to the button that causes the function to die, that is until the account has been logged out of. Deleting the plist file is not the only way to get the buttons working again...