Help with jumping mouse pointer in initial menus?

Apologies if this has been covered before. I used the search and used multiple search terms but couldn't find anything.

I'm coming back to Arcanum after years away. I am trying something that may just flat out not work but I am still somewhat hopeful. Here's my setup:

MacBook Pro
VMware Fusion 1.0
Windows XP Professional, fully patched/updated/upgraded/fubar'ed

Everytime I fire up Arcanum and get to the main menu the mouse pointer leaps around the screen at the smallest mouse movement. It's impossible to select certain elements in the menu. I've tried tweaking the mouse controls at the OS level with no change in behavior. I've uninstalled Arcanum and re-installed. I tried unpatched and patched. I've Googled. I've set the VM's resolution to 800x600 (smallest I can do). I've tried Arcanum, Arcanum (Safe Mode), Arcanum Fullscreen

This certainly could just be an unsolvable problem due to the environment I'm trying to play in, but I wanted to see if anyone out there had encounted a similar problem and solved it in any environment. It may point me in the right direction.

Thanks!

 

Do you have latest mouse drivers?

 

Though that question can be taken multiple ways, the answer to all of the ones I can think of is "yes"

I have the most recent (VMware provided) mouse device drivers for XP (remembering that it's kind of an abstracted device)

I have the most recent version of VMware Fusion, thus providing the most recent abstracted device.

I have the most recent mouse drivers for OS X, the host OS.

Everything else I try in XP in the VM exhibits normal mouse behavior... though I have not tried any other Arcanum-era games.