Up to date Parallels 11 and OS X 10.10.5. The mouse pointer jumps rather than moving smoothly. I tried changing to the optimized game mode and changing the scrolling rate in VM OS X and host OS X. No dice. Works fine in Windows 7.
Hello @KentK Please shutdown your Windows Virtual Machine before you make any changes to the Virtual Machine configuration. Please reinstall Parallels Tools from Action->reinstall Parallels Tools. You can configure or disable this feature in the Virtual Machine Configuration -> Hardware -> Mouse & Keyboard-> Don't Optomize for games. Please refer to this article