Source code in the bitbucket repo over there
Connect the PS2 pins as described in the sketch, connect a RS232 level shifter to the Serial1 pins on the Teensy / Arduino and the mouse port on the DEC VAX or VT. DEC Mouse pinouts and protocols can be found in the "VCB02 Video Subsystem - Technical Manual" and I will post the relevant info here shortly as well.
Do you have anymore documentation on this one? This has been the best source I have found to try and save some manufacturing equipment. Its turned into a project of interest for me.