I was having the same problem as well.  No new software was installed
nor were changes made to the system.  The only thing I did which made me
begin having this issue was running Virtualbox.  I removed the
virtualbox modules with rmmod with no difference.

If I disconnected one monitor, the jumpy mouse cursor and choppy video
would be smooth as it originally was.

I would suggest trying this with the ATI Catalyst software package
installed on your system (if it is).  Be aware my issue was with the
NVIDIA card or proprietary driver.

Without modifying anything else, I found a solution that worked for me:
1. First: I am running the nvidia proprietary video driver, not GNU.
2. Run "NVIDIA X Server Settings" from KMenu -> System.
3. Disable second monitor
4. Reboot machine (I did not restart X or KDM in this instance; proprietary 
drivers tend to want you to have to reboot the system).
5. Run "NVIDIA X Server Settings" from KMenu -> System.
6. Re-enable second monitor.
7. Reboot machine (see notes in step 4).
8. All choppyness went away.  Everything is smooth again.

I'm wanting to know if doing something similar for your ATI cards fixes
it or stays the same.

Good luck and let me know.

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https://bugs.launchpad.net/bugs/945749

Title:
  Mouse pointer jerky on login screen

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