diff --git a/reactos/subsystems/mvdm/ntvdm/bios/bios32/moubios32.c b/reactos/subsystems/mvdm/ntvdm/bios/bios32/moubios32.c
index f116762252a..a77fa4d8334 100644
--- a/reactos/subsystems/mvdm/ntvdm/bios/bios32/moubios32.c
+++ b/reactos/subsystems/mvdm/ntvdm/bios/bios32/moubios32.c
@@ -110,6 +110,24 @@ VOID BiosMousePs2Interface(LPWORD Stack)
 
 BOOLEAN MouseBios32Initialize(VOID)
 {
+    BYTE ControllerConfig;
+
+    /* Clear the mouse queue */
+    while (PS2PortQueueRead(1)) continue;
+
+    /* Enable packet reporting */
+    IOWriteB(PS2_CONTROL_PORT, 0xD4);
+    IOWriteB(PS2_DATA_PORT, 0xF4);
+
+    /* Read the mouse ACK reply */
+    PS2PortQueueRead(1);
+
+    /* Enable IRQ12 */
+    IOWriteB(PS2_CONTROL_PORT, 0x20);
+    ControllerConfig = IOReadB(PS2_DATA_PORT);
+    IOWriteB(PS2_CONTROL_PORT, 0x60);
+    IOWriteB(PS2_DATA_PORT, ControllerConfig | 0x02);
+
     /* Set up the HW vector interrupts */
     EnableHwIRQ(12, BiosMouseIrq);
 
diff --git a/reactos/subsystems/mvdm/ntvdm/clock.c b/reactos/subsystems/mvdm/ntvdm/clock.c
index 7909321181f..bebb7cd3185 100644
--- a/reactos/subsystems/mvdm/ntvdm/clock.c
+++ b/reactos/subsystems/mvdm/ntvdm/clock.c
@@ -39,7 +39,7 @@
 // #define WORKING_TIMER
 
 /* Processor speed */
-#define STEPS_PER_CYCLE 256
+#define STEPS_PER_CYCLE 1024
 
 /* VARIABLES ******************************************************************/
 
diff --git a/reactos/subsystems/mvdm/ntvdm/dos/mouse32.c b/reactos/subsystems/mvdm/ntvdm/dos/mouse32.c
index a6a6ae22a06..4a3c10afc73 100644
--- a/reactos/subsystems/mvdm/ntvdm/dos/mouse32.c
+++ b/reactos/subsystems/mvdm/ntvdm/dos/mouse32.c
@@ -30,8 +30,6 @@
 #define MICKEYS_PER_CELL_HORIZ 8
 #define MICKEYS_PER_CELL_VERT 16
 
-static MOUSE_PACKET Packet;
-static INT ByteCounter = 0;
 static BOOLEAN DriverEnabled = FALSE;
 static MOUSE_DRIVER_STATE DriverState;
 static DWORD OldIrqHandler;
@@ -289,50 +287,25 @@ static inline VOID DosUpdateButtons(BYTE ButtonState)
 
 static VOID WINAPI DosMouseIrq(LPWORD Stack)
 {
+    BYTE Flags;
+    SHORT DeltaX, DeltaY;
     COORD Position;
     BYTE ButtonState;
 
-    switch (ByteCounter)
-    {
-        case 0:
-        {
-            Packet.Flags = IOReadB(PS2_DATA_PORT);
-            break;
-        }
+    /* Read the whole packet at once */
+    Flags = IOReadB(PS2_DATA_PORT);
+    PS2PortQueueRead(1);
+    DeltaX = IOReadB(PS2_DATA_PORT);
+    PS2PortQueueRead(1);
+    DeltaY = IOReadB(PS2_DATA_PORT);
 
-        case 1:
-        {
-            Packet.HorzCounter = IOReadB(PS2_DATA_PORT);
-            break;
-        }
+    /* Adjust the sign */
+    if (Flags & MOUSE_X_SIGN) DeltaX = -DeltaX;
+    if (Flags & MOUSE_Y_SIGN) DeltaY = -DeltaY;
 
-        case 2:
-        {
-            Packet.VertCounter = IOReadB(PS2_DATA_PORT);
-            break;
-        }
-
-        default:
-        {
-            /* Shouldn't happen */
-            ASSERT(FALSE);
-        }
-    }
-
-    if (++ByteCounter == 3)
-    {
-        SHORT DeltaX = Packet.HorzCounter;
-        SHORT DeltaY = Packet.VertCounter;
-
-        /* Adjust the sign */
-        if (Packet.Flags & MOUSE_X_SIGN) DeltaX = -DeltaX;
-        if (Packet.Flags & MOUSE_Y_SIGN) DeltaY = -DeltaY;
-
-        DriverState.HorizCount += DeltaX;
-        DriverState.VertCount  += DeltaY;
-
-        ByteCounter = 0;
-    }
+    /* Update the counters */
+    DriverState.HorizCount += DeltaX;
+    DriverState.VertCount  += DeltaY;
 
     /*
      * Get the absolute position directly from the mouse, this is the only
@@ -834,13 +807,6 @@ VOID DosMouseEnable(VOID)
 
         /* Set the IRQ handler */
         RegisterDosInt32(MOUSE_IRQ_INT, DosMouseIrq);
-
-        /* Enable packet reporting */
-        IOWriteB(PS2_CONTROL_PORT, 0xD4);
-        IOWriteB(PS2_DATA_PORT, 0xF4);
-
-        /* Read the mouse ACK reply */
-        PS2PortQueueRead(1);
     }
 }
 
diff --git a/reactos/subsystems/mvdm/ntvdm/hardware/mouse.c b/reactos/subsystems/mvdm/ntvdm/hardware/mouse.c
index 1cdae0ab763..96ee4a27870 100644
--- a/reactos/subsystems/mvdm/ntvdm/hardware/mouse.c
+++ b/reactos/subsystems/mvdm/ntvdm/hardware/mouse.c
@@ -208,6 +208,7 @@ static VOID WINAPI MouseCommand(LPVOID Param, BYTE Command)
         }
 
         DataByteWait = 0;
+        return;
     }
 
     /* Check if we're in wrap mode */
diff --git a/reactos/subsystems/mvdm/ntvdm/hardware/ps2.c b/reactos/subsystems/mvdm/ntvdm/hardware/ps2.c
index 055e21c27bd..c7f69f2fc61 100644
--- a/reactos/subsystems/mvdm/ntvdm/hardware/ps2.c
+++ b/reactos/subsystems/mvdm/ntvdm/hardware/ps2.c
@@ -42,7 +42,7 @@ typedef struct _PS2_PORT
 #define PS2_PORTS  2
 static PS2_PORT Ports[PS2_PORTS];
 
-#define PS2_DEFAULT_CONFIG  0x47
+#define PS2_DEFAULT_CONFIG  0x45
 static BYTE ControllerConfig = PS2_DEFAULT_CONFIG;
 static BYTE ControllerCommand = 0x00;
 
@@ -405,7 +405,7 @@ BOOLEAN PS2Initialize(VOID)
     RegisterIoPort(PS2_CONTROL_PORT, PS2ReadPort, PS2WritePort);
     RegisterIoPort(PS2_DATA_PORT   , PS2ReadPort, PS2WritePort);
 
-    IrqTimer = CreateHardwareTimer(HARDWARE_TIMER_ONESHOT, 20, GeneratePS2Irq);
+    IrqTimer = CreateHardwareTimer(HARDWARE_TIMER_ONESHOT, 10, GeneratePS2Irq);
 
     return TRUE;
 }