Mouse pointer is jerky. Enhance pointer precision option is not working well in Win 7

[drf]

I miss the mouse pointer movement from Windows XP. Is there any way to 'import' the way the mouse was behaving in Windows XP 32 bit to Windows 7 64 bit?

In Windows XP with the Enhance pointer precision turned on the mouse moved as it should, i.e. quite smoothly all the time and with good precision. While in Windows 7 I cannot find setting neither with Windows Mouse options nor with the Logitech SetPoint for Wireless Mouse M305 so that it would move smoothly and precisely. It moves jerky to so extent that I have great troubles pointing precisely. I often have to move the mouse several times to point precisely enough in the place I want to click (in Windows XP with the Enhance pointer precision turned on usually I was able to point preciselly the first time instantly). That is so very distracting, and annoying that it hinders normal work with computer, and I spent already several days looking for a solution, all in vain.
Also sometimes the mouse pointer gets stuck for as long as a second or two.

Turning on the Enhance pointer precision in Windows 7 seems to work exactly opposite to Windows XP. While in Win XP it made the mouse pointer more precise and moving more smoothly all the time, in Windows 7 it only accelerates the mouse pointer considerably, but does not increase precision at all, makes it rather even less precise.

I uninstalled Catalyst drivers hoping that perhaps they interfere. Nope. I even installed on a separate disk Windows XP in this computer to test if it is not a hardware problem. Nope. The mouse works as it should in Windows XP with Enhance pointer precision turned on, the pointer there is moving precisely and smoothly.

Is there a way to fix this problem? Do I really have to suffer like this with this jerky mouse pointer? Is the only solution to go back and install Windows XP, as my main system again, with its memory limitation, no build in TRIM and so on?

BTW, I use 150% DPI set in system Control Panel for text magnification. But when it was less than 150% the problems with the mouse were the same in Windows 7.

[SUMMONER]

Have you tried clicking the restore defaults button in the Setpoint utility?

I believe that the dial for pointer speed should be smack in the middle and Pointer acceleration set to none, otherwise the smoothness of the mouse movement will suffer.

Has the Setpoint software identified your mouse by its model number?

[drf]

Has the Setpoint software identified your mouse by its model number?

Yes. I uninstalled Setpoint yesterday and I am using only Windows setting now. Not that it helps much.