Hacking tips are always appreciated! 
I just won an auction for three 2.5" trackballs for $9.99 & was planning to attempt a mouse hack using the original TB optics.
Mouse hacks are really easy. There are lots of guides available to help you through the process. The hardest part is finding a non-optical, non-Logitech, non-expensive USB mouse, preferably one that also has a PS/2 adapter. Small computer stores that sell OEM hardware are your best bet.
The hack basically comes down to:
- Get a mouse. See my notes above.
- Get a 6-position female Molex connector from Radio Shack. They're in the "Power Connectors" drawer in the components section in the back.
- Get some hookup wires, each about 8 inches long: one red, one black, one green, one purple, one yellow, and one.... what's the last color? Orange, I think... the point is to match the six wires in the trackball.
- Get up to six more hookup wires, two for each mouse button you want.
- Open the mouse and take out the board.
- Where the cable connects to the mouse board, there will be 4 connections. One of these is +5V, another is ground. Look at one of the mouse hack guides for more info on how to figure out which ones are +5 and ground. Solder your black wire to the ground and your red wire to +5V.
- Find the two optical receivers. These will be next to where the encoding wheels went; on one side of the wheel will be a 2-pin LED, and on the other side will be a 3-pin receiver. Desolder and remove the 3-pin receivers.
- Attach the two wires for each axis to the corresponding outer pins on each receiver, ignoring the center pin. Look at hoe the mouse would have rolled to figure out which receiver gets the X axis wires and which gets the Y-axis wires.
- Crimp on the molex pins and dry-fit them onto the corresponding pins on the trackball, taking care that none of them touch each other. Plug it in and test.
- One or both of your axes probably spin backwards at this point. For those axes that spin backwards, desolder and swap the wire connections.
- Try it again. It should all work now.
- If you want mouse buttons, desolder the two or three mouse buttons and solder the pairs of wires for the buttons in their place. Crimp .187 quick disconnects on the ends of these wires.
- Find a place on the mouse board that you can wrap a ZIP tie around, and ZIP tie all the wires to the board for strain relief.
If you like, stick the board back in the mouse shell as a case, with the wires coming out either the hole for the mouse ball or through one of the buttons after you remove the button plastic.
Or, buy Oscar's $9.99 prehacked mouse!
--Chris
If you have trouble hacking a mouse based on one of the guides out there, post and we should be able to walk you past iit