If you are having issues where the mouse is jerky on a Server 2008 VM, while viewing it from vSphere client “Open Console”, check to make sure you have a VMware driver for the video card.
You can check by going to the Control Panel > Display > Screen Resolution > Advanced Settings > Adapter Type. If it just says SVGA, VMware SVGA or something to that affect you need to update the drivers. You can manually install the video driver to correct this, the drivers are located here – C:\Program Files\Common Files\VMware\Drivers\wddm_video. When you update the drivers, just search for them in “C:\Program Files\Common Files\VMware\” and include subfolders, Windows will pickup the correct driver. Once the drivers are up to date you will notice that, after the reboot, your mouse is nice and smooth like it should be. The display Adapter Properties should now read, “VMware SVGA 3D (Microsoft Corporation – WDDM)”
This fix should be relevant to all Windows Server 2008 VMs. Any questions, let me know!