I've got a Cocolino too. I use it with a USB trackball with a PS/2 adapter through a KVM and it works beautifully.
I do not use the driver. The scroll wheel feature was handy, but I had a problem where the mouse would jump to the upper left corner of the screen and stay there until I disconnected and reconnected the mouse. This was even before running it through the KVM. This never happens without the driver.
