Serial.write(button)
Serial.write(x);
Serial.write(y);
Serial.write(wheel);
wheel ,x,y and button are all ints ie 16 bit signed values ie 8 bytes sent

Hserout [0]
Hserout [0]
Hserout [10]
Hserout [0]
are all bytes ie 8 bit unsigned values ie 4 bytes sent

I changed the oscillator value but it still doesn't work.
post your code including the fuse config