As a followup to my earlier post, I have found a solution to the mouse
scroll wheel problem. I discovered a program called KatMouse, located

that completely solved the problem. The mouse wheel now behaves
exactly as expected in Kermit 95.

One caveat is that it will not work with Windows 9x/ME, only
NT/2000/XP. Not a problem for me, as I only use 32-bit Windows.