I was happily running older version of kernel patch, I believe 
patch-2.6.15-mh2, which allowed me to enable additional buttons on 
Microsoft IntelliMouse Explorer for Bluetooth.

The only issues that I could not solve satisfactory is resumption from 
sleep, initial boot, and timeout, requiring me to reset the mouse every 
time by pressing small button on its bottom.

I decided to give a try to the latest kernel 2.6.18 with Fedora Core 5 
and patch-2.6.18-mh1 with latest bluez tools. The start was promising: 
unpatched kernel 2.6.18 with FC5 and bluez 2.25 enables IntelliMouse via 
Boot protocol with the resumption from sleep working! This is an 
improvement from earlier versions. This doesn't brong the closure, 
though, because the boot protocol lacks the support for scroll wheel and 
additional buttons.

So I upgraded to bluez 3.5 but this didn't make any difference.

I then patched the kernel with patch-2.6.18-mh1. This killed the mouse: 
the cursor would not move.

After many hours I finally was able to solve the problem by using the 
previous patch-2.6.15-mh2 against the 2.6.18 kernel. I am attaching that 
patch. Note that it will produce a few harmless warnings.

The good news is that this is the configuration that enables fully 
functional IntelliMouse.

Here is the rest of steps needed to fix the resumption from the sleep.

* set this in the rc.local:

     /usr/local/sbin/hcid
     /usr/local/bin/hidd -t 10 --connect 00:50:F2:E8:E0:71 --server
     /usr/local/sbin/hciconfig hci0 down
     usleep 500000
     /usr/local/sbin/hciconfig hci0 up


* Set this in the "sleep script":
    before sleep:
     /usr/local/bin/hidd --killall
     echo disable > /proc/acpi/ibm/bluetooth
     /sbin/rmmod hci_usb

   after sleep:
     /sbin/modprobe hci_usb
     echo enable > /proc/acpi/ibm/bluetooth

Sleep steps above may not be needed at all with your hardware and 
distribution.

Many people suggested to use "hidd --connect 00:50:F2:E8:E0:71" alone. 
It never work for me. hciconfig hci0 down/up made the difference.

I hope this helps.