This is the serious problem associated with mainly Windows Vista. This issue arises with certain mouse models like the wireless Logitech MX Revolution or USB enabled optical mice though these are certified as Vista compatible.
Windows Vista can easily detect external mice and install the appropriate drivers but the problem is that the cursor does not position correctly.For instance, if you have an OK/Cancel dialog, you may have to click in some area outside the buttons in order to close the dialog.
You will face similar issue while trying to adjust the size of windows or when you decide to close or minimize any window. The pointer will not behave correctly because the actual location is different from what you see on the screen.
You will face this issue on an Aero-enabled Windows Vista Ultimate machine with SP1. The support guys recommended recharging the mouse, downloading the latest drivers, reinstalling everything etc. but none of those work.
The Simple Solution
But fortunately there is a simple solution of this problem. You can fix this problem in a moment. Just open Control Panel and in that open Mouse setting which is under Hardware and Sound button and change the pointer scheme from Windows Aero to None. This is the simple trick that fixes this issue.