The solution to cursor jumping problem was to use a utility called "touchfreeze" which will freeze your cursor while you type, thus avoiding the jumping problem.
download the touchfreeze software from Google code website and installed.
This is not the real solution for this problem. This is only a work around until Microsoft come up with an appropriate problem to handle this problem on the laptops with touchpads (but found out it does fix the problem for most laptops).
I also found this: Double click on touch pad icon in your system tray. click on "Pointer Options". Then click on "Advanced" tab in left upper corner. Click on Advanced Feature setting. Click on "Settings" in Pointer speed and tapping setting box. Uncheck "Enable Tap" box. Click Apply.
Also found this: IT's the Enhanced Pointer Presision Feature
Just turn it off .... TO turn off the Enhance pointer precision feature:
Click Start, click Run, type control mouse, and then click OK.
Click the Pointer Options tab, click to clear the Enhance pointer precision check box,click Apply and OK.
You can also try this: starting Computer in Safe Mode F8, then doing a Virus Scan.
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