In newer Xorg versions AllowEmptyInput is on by default,
And that appear in Xorg.0.log of the eee701 machine:
(WW) AllowEmptyInput is on, devices using drivers 'kbd', 'mouse' or 'vmmouse' will be disabled.
(WW) Disabling Keyboard
(WW) Disabling Mouse
With the mouse disabled as result.
Option "AllowEmptyInput" "false"
in ServerLayout Section fixes the problem
InputDevice "Touchpad"
InputDevice "Keyboard"
InputDevice "Mouse"
+ Option "AllowEmptyInput" "false"
EndSection
Section "Files"
DESCRIPTION = "Machine specific xorg.conf files"
-PR = "r19"
+PR = "r20"
SRC_URI = "file://xorg.conf"