Arduino As Wireless Computer Mouse

I would like to create my own wireless mouse using an Arduino. I faintly remember (haven't worked on an Arduino project for a couple of years) that Arduino Leonardos were able to emulate keyboard and mouse events. How could I make it act as a wireless mouse?

Basically, I would like to connect the device I am building to a PC and have it recognized as a mouse.

What would be the hardware requirements of such project?

I am planning to build something hand mounted, so LilyPad or Arduino Mini Pro size would be ideal.

What would be the hardware requirements of such project?

If that description is all you have: Buy a wireless mouse. It does everything you need and costs less than any Arduino not even mentioning the additional hardware (laser movement sensor, bluetooth module, etc.).

I have started there, resoldered the microswitches etc.

To be more descriptive I am building a cap sense ring mouse. I would like to play around with various capacitive sensors for thumb on index finger ring input. In order to be more flexible with sensor types, I've figured it would be better to move the project to an Arduino.

In this case start with providing links to all hardware you already defined. What protocol/radio do you plan to use? Are you prepared to pay multiples of the price a similar off-the-shelf product would cost?
Describe in detail what kind of device you're planning (which parts are used from a standard mouse, which parts do you want to replace by what, etc.).

The Leo/Micro or Pro-Micro (probably others have the same HID functions)... needs to be physically connected to your PC.

That is the 'connection' to the machine to act like an HID device..

You'll need some sort of other 'device'... to be your 'wireless' input.. to take your interaction and send it to the connected HID Arduino..

Example:

Pro-Micro.. connected to pc.. will need to have a bluetooth receiver..
You will need another Arduino which is in your hard...taking the button presses/movement..etc... sending this 'data' (action) via bluetooth transmitter to the connected Pro-Micro and BT receiver.

Make sense?

Your not going to get 'wireless' with just your 1 Leo/Micro/Pro-Micro device.

So.. without your 'sensors' (whatever those are).. you're looking at roughly:

$3-4.00 USD for Pro-Micro (HID device)
$2-3.00 USD (each, x 2) bluetooth HC-05 devices.
$2-3.00 USD for a Pro-Mini

So far.. max $13.00 or so.. (if you order clones from China via eBay)

As you only talk about/reference the once device.. but than also reference wireless..... I'm not sure you understand how this works.

I'm also trying to create this project, did you finished it?