thank you, yes. in 1.x somehow i got in the habit of choosing option 3 for my usb mouse and scrolling. this is probably because i was using both ps/2 and usb mice, but i haven't used the ps/2 mouse in a while.
it worked fine in 1.x so i kept using it, but in 2.x i can scroll and cut and paste with the option you suggested. i do wonder if that ps/2 mouse will still cut and paste, but it will have to wait.