I also had a fit trying to get my 3 button Logitech mouse to work
well in Knoppix. I added the following to my X86Config-4 file:

Option "Resolution" "300"

I use a large monitor at 1280x1024 so you might need to adjust this
to your own preference. Possibly 200 to 240.

In the Control Panel, Peripherals, Mouse, I set my mouse to 6 on the speed
and 4 on the threshhold. On my other machine I use 8 & 4 respectively.