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[Michael Totschnig <michael.totschnig@xxxxxxxxxxxxx>]

I had exactly the same problem with the same type of mouse and was able to fix it by giving the option proto=imps to the psmouse module.
You can test it by executing the following two lines in a shell
sudo modprobe -r psmouse
sudo modprobe psmouse proto=imps

To make it persistent I created a file /etc/modprobe.d/psmouse.conf with
the line

options psmouse proto=imps

-- 
2.6.28-11 breaks mouse scrolling
https://bugs.launchpad.net/bugs/359449
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