Hi Eishi,
I have selected the below option:
Device Drivers -> HID Devices -> Special HID drivers -> HID Multitouch panels as an embedded driver (*) in my Kernel configuration, and then I have added my touchscreen's Vendor ID and Device/Product ID to my kernel drivers table and rebuilt the Kernel. My touchscreen is working as expected now.
But for mouse, similar problem is observed sometimes when using a low-speed USB devices such as mices and keyboards. Try to connect your mouse and keyboard through an external USB Hub.