What kind of mouse? Brand name, optical, etc. It just may need new drivers installed.

This may not apply, but if you have a microphone active, (e.g. for using speech recognition) then unless it is muted, extraneous sounds can cause the cursor to jump.

I've noticed the same condition (intermittently) on a Latitude C600 with a PS2 mouse, and have submitted a bug report to MS.  Will post any relevant response(s) to this thread upon receipt.  For what it's worth, the Lat does not have any of the OEM touchpad/trackstick/mouse software installed.

Thanks for the info but I believe I solved my problem.  After doing some troubleshooting, the problem was not a jumping cursor but a system interruption.  I had configured my system to automatically check for Microsoft updates which was causing the problem and giving the illusion that the cursor was jumping.  I have now changed the setup so I manually check for updates and the problem has disappeared.

Another good reason to use manual updates. I set all my software to manual updates if possible. Otherwise I'd have ten or more things almost continually and needlessly sending out over the internet.

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@JRosenfeld wrote:
Another good reason to use manual updates. I set all my software to manual updates if possible. Otherwise I'd have ten or more things almost continually and needlessly sending out over the internet.

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I have Windows Update set to "Notify" me when updates are available. I leave only my AV program to auto-update itself.