I've have had a couple of Kensington Trackballs for Mac (ADB) and a joystick and they worked from System 6 to 7.6.1 without a driver.
Check if a mouse works on those ports, and if yes, then something in the Mouse-in-a-Box is broken.
Check if a mouse works on those ports, and if yes, then something in the Mouse-in-a-Box is broken.