I contacted Razer support and they ended up recommending me to send it in for replacement. I was among the first batch of people to receive the mouse, I imagine that there may have been a flaw with that specific production line. So far everyone that I've talked to who had purchased their Naga Chroma within the first 2 weeks of release are having issues, others are fine.
Troubleshooting tips: Please ensure that the device is plugged directly into your system (back USB ports) and/or try the product on another computer. This will help us determine whether it is a hardware related issue. Please try the mouse on another mouse pad or on a plain white paper surface.
If you are using the mouse with Synapse software, please reset surface calibration in Synapse.
1. Launch Synapse 2.0
2. Press and hold the Left, Right and Middle mouse buttons (M1, scroll wheel, M2) for 5 seconds while the mouse is plugged in.
3. After resetting your mouse you should readjust the surface calibration within Synapse.
You can also try clean the lens. Error on cursor sometimes may related to dirty or scratched sensor lens.
Clean the sensor lens with a Q-tip and some alcohol, let it dry for 5mins and try again. Please use Isopropyl Rubbing Alcohol 99% for this purpose. You do not want to use Rubbing alcohol that contains ethanol. Isopropyl Alcohol 99% or 100% pure is commonly found in most all drug stores and medicine cabinets. Further cleaning can be obtained by using some "air in a can" or "canned air" to blow out any dust on and around the sensor assembly.