He's a lucky dog, that rchealey! I also tried replacing AppleHIDMouse.kext with a "known-good" copy from another computer (after yelling "Eureka!" and kicking myself for not thinking of that myself), but unfortunately it didn't work for me.
One difference between myself and rchealey is that I don't have access to Mountain Lion; my extension came from another computer running MacOS 10.7.5. In fact, a quick diff showed that the supposedly "known-good" driver was identical to the "bad" driver. The plot thickens...
Now I'm wondering how that could possibly be. One difference between my "good" and "bad" 10.7.5 systems is that "bad" is the only one running the 32-bit kernel/extensions and "good" is running 64-bit. But I just tried rebooting "good" in 32-bit mode (by holding the "3" and "2" keys down during reboot), and it's still "good".
The reboot in 32-bit mode takes a long time, which, as I understand it, is because the OS has to rebuild the extension cache. That made me wonder whether the problem with my "bad" system is a corrupted extension cache. Has anyone tried rebuilding it? (for how to do this, see, for example, Japamac's response in this thread:
https://discussions.apple.com/thread/3432777?answerId=16518704022#16518704022 )
I'm going to try this as soon as I get home.
-- Philip