It took me a while to figure out how to configure the track point and middle button to work on Fedora 8, so I am writing this in case anyone else have the same problem. With this solution, you can use the trackpoint to scroll vertically and horizontally while holding the middle key. This is of course for Fedora 8, but should work with other distributions as well.

First modify your /etc/X11/xorg.conf file's pointer device section to look something like this. major changes were the Driver, the protocol option and the other wheel and axis options.

Section "InputDevice"
Identifier "Synaptics"
Driver "mouse"
Option "CorePointer"
Option "Device" "/dev/input/mice"
Option "Protocol" "ExplorerPS/2"
Option "Emulate3Buttons" "yes"
Option "EmulateWheel" "on"
Option "EmulateWheelButton" "2"
Option "EmulateWheelTimeOut" "1"
Option "YAxisMapping" "4 5"
Option "XAxisMapping" "6 7"
Option "ZAxisMapping" "4 5"
EndSection
If you want to use the middle mouse button as pasting, remove the "EmulateWheelTimeOut" option, this way you won't paste every time you try to scroll. And in firefox to enable scrolling horizontally and not go back and forth in pages, go to the "about:config" and change the "mousewheel.horizscroll.withnokey.action" value to 1. Enjoy!

So if you have a Lenovo IBM thinkPad T61p T61 T60 Series Laptop with the Synaptic red track point and want scrolling to work correctly with the middle button in fedora 8 linux, this would be a good solution.