Laser mouse causes choppy animation

When using the MS Sidewinder x5 Laser Mouse, icon animations and cursor movement on Docky are significantly choppy. This persists even with zoom turned off, in 2d and in panel mode. The strange thing is when I use any other mouse or my laptop's trackpad, icon animations are butter smooth and really nice. Only when moving the mouse extremely slowly across icons, the animation is smooth. Normal/slow movement and fast movement result in choppiness.

I checked xinput settings for trackpad and the mouse, and changed all of the mouse's settings to match that of the track pad (where animations are smooth). Still results in choppiness. Changed graphics driver to fglrx, fglrx-updates and 13.1 from AMD's website. Animations slightly better (probably due to better graphics performance compared to opens-source drivers) but still choppy.

Any help greatly appreciated. :)

I'm using:
Docky 2.1
Ubuntu 12.10
Xorg 1.13.0
Video Card Radeon HD 6520G
GNOME 3.6.0
Mono 2.10.8.1

If I can provide any other details (or a screencast), please let me know.