Perhaps it is just the desktop surface. If the mouse is "optical" it is more sensitive to surface than if it is "laser". Even laser can find some surfaces to be problematic. Try a different surface and make sure no dust is covering the sensor.
When the mouse produces data it goes to a buffer. Each time the driver polls for data in the buffer it updates. A 100Hz refresh means data accumulates for about 10ms before it can be used. At 1000Hz data only accumulates at most 1ms before it is used...1000Hz is smoother motion. The trick is that the driver has to have time to be serviced...if there is something consuming the system resources there is a possibility it won't get to the driver on time. No matter how good your mouse is it depends on the driver getting a time slice to service the mouse.
Now look at it in a different view point...a mouse which tracks higher DPI or finer changes pushes more data to the buffer in a given period of time for a given movement (versus a lower DPI mouse). The buffer must be larger. If the buffer is insufficient, then you get a buffer overrun before the driver is serviced. If the mouse is 100 times more sensitive than the old mouse, but services are ten times faster, then your buffer still needs 10 times more capacity to avoid the buffer overrun. Overrun data is lost.