Today, I installed a new Windows-2008 (64bit) VM under vSphere-4.1. As usual, although I had installed VMware tools, I noticed that the mouse performance within the VM console was bad. And as usual, I thought may be I should just use RDP instead to do all my admin tasks. But then decided to go to the bottom of this issue. I googled around and voila; I found a VMware KB article for resolving exactly this issue.
If you too are having an issue of slow (lagging) mouse performance on Windows-2008 or Windows-7 VMs, be sure to check out KB1011709.
All I did was update the installed video driver (installed by VMware tools) with the ‘wddm_video’ driver. The ‘wddm_video’ driver is also shipped by VMware tools but not installed by default. Before installing the new video driver it was frustrating to work with Windows-2008 on the console. Trying to control the mouse had my hand paining. Interestingly although the KB article states that this is also a symptom found on Windows-7, I have never seen it on Windows-7.
Anyways, life is back to good.