<snip>
My curser is frozen! I cannot use my mouse... The mouse is a Labtec Optical.
</snip>

Knoppix, like most Linuxes, is rather persnickety about mouses. I would consider a Labtec brand mouse to be a generic mouse from an unknown OEM; Labtec doesn't manufacture them.

I have had excellent $20 mouses that refused to work (one would not let me complete a SuSE install, for example) and $2 generic mouses that work just fine. I have found that current Logitech mouses are about the most compatible, overall.

Remember that modern mouses, trackballs, and other similar pointing devices are computers in and of themselves, admittedly simple; I believe that most cheap ones are optimized for use with Windows (timing issues, handshaking, etc.) and other operating systems are given short shrift. It shouldn't have to be that way, but until users can discover these issues and find a way to make manufacturers respond, we're stuck!