Mouse Lag with VPC 2007

I've been using VPC a lot lately, most due to:
1) wanting to run Vista, but needing XP
2) wanting to have a decidicated SharePoint environment to work on without installing all of the tools on my laptop
3) wanting a server OS for dev use

I've run into some issues with SEVERE mouse lag... which made XP almost unusable. I did stumble across the Mouse Integration option, which was set on with my 2003 environment, but not XP.

In order to turn on Mouse Integration for XP, I first had to install teh Virtual Machine Additions (found under Action in the VPC window for the XP windows). Prior to installing it, Mouse Integration wasn't enable.

I installed the Additions, enabled Mouse Integration, and voila! No lag. It does mean that my cursor can easily go from one monitor to the other (currently using two monitors) but a small price to pay for not having the lag.