This sounds like people are sitting there, watching the process in fascination...which could be the problem. Ball python hatchlings are extremely shy and nervous, and they will not eat if they feel insecure. Would you feel secure eating if a big monster was STARING AT YOU 0_0 while you ate?

Here's what should be happening--offer the mouse to the ball python. When it grabs and wraps the mouse, leave the room. Stay away for an HOUR. While you are gone, the ball python will drop the mouse, look around to make sure the coast is clear, then it will pick the mouse back up (hopefully by the head) and swallow it.