I'm having the exact same problem... it happened when I installed my Nvidia GeForce GTX 660... I have a feeling it might be the Nvidia control panel. Iv'e tried dabling in the setting but nothing... I know it's not my mouse because its wired... and i KNOW its not my GPU becuase I can run games like Metro: Last Light ad Tomb Raider with 60 FPS on ultra... This problem with minecraft is EXTREMELY frustrating. Have you maybe found a solution ever since this was posted?? Any One??
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Mouse movement causes huge lagg how do I fix it?