Update:
After thinking it over, I figured that the pinout must be incorrect...
I know for a fact that the +5v and ground are correct. (By the 470 resistor that I have seen on other models as well).
So here is the pinout for the connector(left to right) to the test points on the board and then to the pins on the chip:
1 -not connected
2 - Ground
3 - T11 -pin2 on chip
4 - T10 -pin3 on chip
5 - T6 -pin7 on chip
6 - +5v -pin44 on chip
7 - Ground
8 - T8 -pin5 on chip
9 - T9 -pin4 on chip
10 - Ground
11 - T5 -pin8 on chip
12 - Ground
13 - not connected.
So, I tried all of the following as combinations for the Data & clock for the ps2 connector:
T5, T6, T8, T9, T10, T11
And all are the same halt at mouse_init function except for T8:
clk data
T8 none all 1's
T8 T5 all 1's
T8 T6 mouse_init halt
T8 T9 all 1s
T8 T10 all 1's
T8 T11 all 1's
the all ones refers to the following output (doesn't change if I try to move my finger on the touchpad) :
setup
inside mouse_init
post reset inside mouse_init
exit mouse_init
mouse_init done
11111111111111111111111111111111 X=-1 Y=-1
11111111111111111111111111111111 X=-1 Y=-1
11111111111111111111111111111111 X=-1 Y=-1
11111111111111111111111111111111 X=-1 Y=-1
11111111111111111111111111111111 X=-1 Y=-1
11111111111111111111111111111111 X=-1 Y=-1
11111111111111111111111111111111 X=-1 Y=-1
11111111111111111111111111111111 X=-1 Y=-1
and continues infinitely....
Unfortunately I am running out of ideas as to what to do...
It seems like I cannot connect this touchpad correctly.