This is what I did and I hope it works for you too (obviously I can't guarantee anything):
1. Download the attached file to your computers desktop
2. sudo apt-get install dkms build-essential
3. cd ~/Desktop
4. tar jxvf psmouse-2.6.38-8-generic.tar.bz2
5. sudo mv psmouse-2.6.38-8-generic /usr/src
6. cd /usr/src
7. sudo chmod -R a+rx psmouse-2.6.38-8-generic
8. sudo dkms add -m psmouse -v 2.6.38-8-generic
9. sudo dkms build -m psmouse -v 2.6.38-8-generic
10. sudo dkms install -m psmouse -v 2.6.38-8-generic
11. sudo shutdown -r now
12. dkms status
The output of the last command should look similar to this (with no errors):
"psmouse, 2.6.38-8-generic, 2.6.38-8-generic, i686: installed"
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