Replacing the dinput.dll.so does fix the problem with mouse rotating the view around your character. The latest wine 1.1.29 does not fix the problem, so we still have to do it manually.
There is however another problem resultant from this manual fix. If you move the mouse point to an extreme edge of the screen, the pointer jumps to the center of the screen. A bit annoying but does not prevent from playing since all the buttons can be pressed.
I wonder if there is a way to fix this bug also. Anyone?
That's not a bug- it's how the patch works. Normally, there's two different modes for the mouse pointer in wine that can be set in the registry: normal and mouse-warp. Mouse-warp makes the mouse pointer jump ("warp") to the center of the screen every time you move it. This fixes the problem of not being able to turn fully in games, but it makes it impossible to navigate menus in game, and since you can't control M&B's menus with the keyboard, it is not a viable fix for M&B.
What the patch does is that it warps the mouse pointer to the center of the screen only if it hits the edge of the screen. This means that as long as you do not touch the edges, menus are fine and you can turn your character fully. So no, there's no way to fix this "bug"- it's just how the patch works.
Really, I think it's not even a problem. In fact, sometimes my mouse is close to the edge of the screen and I need to get it closer to the middle and I actually take advantage of this behavior and move the mouse to the edge on purpose. That way I have to move my hand half an inch less. Yeah, I'm that lazy.
I've had the greatest success so far by manually applying the patch to the wine source code and then compiling by hand, rather than use a hacked dinput.dll. Dinput.dll stopped working for me at some point after I upgraded wine, and the patch will continue to work for a long time, as it only modifies a few lines in the patched file. It also means that the mouse-warp behavior can be easily modified via regedit to suit my needs. Currently, both Warband and Mount & Blade run perfectly for me on Lucid with wine-1.1.43-249-g033bb8a