From LQWiki

Here are my settings for svgalib which work under Virtual PC. These are stored in /etc/vga/libvga.config

This file has been tested on:

• Mac OS 10.4 running Connectix Virtual PC 6.0 running Ubuntu Linux 5.04

# Configuration file for svgalib. Default location is /etc/vga.
# Other config file locations:	~/.svgalibrc
# 				where SVGALIB_CONFIG_FILE points
# Lines starting with '#' are ignored.

# Set Virtual PC's mouse type
mouse IMPS2

# These defaults work
mouse_accel_type	power
mouse_accel_mult	60	
mouse_accel_thresh	4	
mouse_accel_power	0.8	
mouse_accel_offset	30

# Set Virtual PC's mouse device.
mdev /dev/psaux
# mdev /dev/input/mice  # Another workable value

# Defaults from original configuration file
mouse_wheel_steps 18		# For MS IntelliMouse (default)
kbd_only_root_keymaps
HorizSync 31.5 35.5
VertRefresh 50 90

# Virtual PC emulates an S3 chip but I couldn't get it to switch to
# modes higher than 320x200.  The VESA driver allows this.
chipset VESA

VesaText	      # Helps the VESA driver with text mode restoration
		      # problems.