Solution: Set Hardware Acceleration to Full

Problem: My mouse movement was really sluggish in a VPC running Windows 2003 R2 (but other OSes are fine)

Acknowledgement: Thanks to Paul Adare on the Microsoft Newsgroup for sorting this one out

Here's the steps:

  1. Right click on Desktop, select Display Properties
  2. Settings Tab
  3. Advanced Button
  4. Troubleshoot Tab
  5. Slide the Hardware Acceleration tab to Full

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