When I enable multiple mouse support in epoc.ini according to the advanced pointer section, the emulator starts fine.
However, when it is finished loading it does not respond to events, it cannot be dragged around the screen and it cannot be closed using it's on close menu. Task manager kills it just fine without a dialog popping up.
The emulator also looks a bit weird, as some kind of status view sits at the bottom partly obscuring the three hardware keys, as soon as the emulator starts up.
I am on a macbook with a separate mouse and keyboard, and that works fine in both mac and virtual machine, the trackpad and the mouse move the mouse pointer, clicking works etc. There are three mice drivers in winxp's device manager.