Comment 1 for bug 74286

I get the blue lines as well, but I'm assuming that part is nothing to worry about, since it will be fixed as they work on this spec: https://blueprints.launchpad.net/distros/ubuntu/+spec/slick-boot

The mouse problems, on the other hand, are an obvious issue. Does the system actually finish booting into the desktop (with icons and panels)? If so, you might be able to give us some more information about how your mouse is (not) being detected:
1. Press Alt-F2 to bring up the Run Application dialog
2. Type in `gedit /etc/X11/xorg.conf` (case-sensitive, without the `quotes`)
3. Use the arrow keys to navigate within the file and find a section that starts with `Section "InputDevice" Identifier "Configured Mouse"`
4. Write down everything in that section, and post it for us here.

I'm sorry you are having hardware trouble with Ubuntu, but the next few releases of the X Desktop environment should give us some big improvements in hardware detection. Good luck!