Hi,
You may try changing the mouse settings and check if that helps.
http://windows.microsoft.com/en-US/windows7/Change-mouse-settings
Hope the information was helpful
Amrita M
Microsoft Answers Support Engineer
I already replied with e@mail @live.com I didn't give the answer that I figured out myself on that reply, so I guess I will do it here.
It appears that that whole clicking by hovering or accidently clicking somewhere on the perimiters of the screen, causes the cursor to jump to that mode. I am more careful about the clicking when I didn't intend to and hovering thing. Works so far, as I had already tried the remedy suggested more than once.