It sounds like your video card does not meet the game's recommended system requirements. If you don't know what your video card is, the video card is almost certainly the problem.
Mouse adjustment won't do anything because the problem isn't with the mouse -- it's with the graphics card being too slow to redraw the screen. You need to turn down or turn off graphics enhancements in the game's options menu. If your video card only meets the minimum requirements, you have to turn graphics enhancements all the way down and may have to put up with some jerking.
One site that lists minimum vs recommended requirements is
*** Games Debate ***.
They list not only "officially" recommended requirements, but their own recommended requirements, which may be different from the official recommendation.
Does your Windows 7 computer have a better (faster) video card?