Phill wrote on 19.04.12 at 12:45:18:

I take it the routine I posted above is the routine to constantly poll the mouse?

No, it's just the setup routine which tells the ikbd to go into absolute mouse mode.
The polling is done by writing $d to $fffffc02 - it's the small routine you posted on AF.
The result of the poll will be deilvered in the ikbd interrupt. The routine pointed to by $118 must handle the results.