Running SuSe 9 on microsoft virtual PC 2004.
got the same issue with mandrake 10.

does it in the installation program, and on the desktop. i have played around with xf86config, and in the hardware manager (on both distros). have set it to autodetect, and to standard PS/2 mouse (which is what VPC emulates).

you click in the virtual PC window to give linux control of the mouse, and when i move, the mouse jumps about 2 inches at a time (always the same distance, like its moving over a grid) in whichever direction i am moving. the mouse buttons work fine.

any ideas? i have googles, yahoo!ed, and searched this forum for the past two days to no avail!

(but i did find out that VPC doesnt support 24-bit color... thats why xwindows kept corrupting the display. that put my linux-on-VPC idea on hold originally)

Though it is late reply, might use for others....

Check out this link:
http://davidbrunelle.com/2006/09/23/...rtual-pc-2004/

you find answer for it.

Regards,
A Friend.