@Sid_hc,
Outside the game, go to the systempack.ini file, which is located in the system folder.
1) Find the line SimpleWindow and set the value to 0 (SimpleWindow = 0). Save the file, go to the game and check if something has changed.
2) Find the line EnableWrapper. If it is true, then put false, or vice versa, if it is false, then put true. Save the file, go to the game and check if something has changed.
3) You can also try to change the lines OnlyAxisMode, ForceMouseControl in the same way (change true or false)
For some, after that, problems with the mouse disappear.