Magic mouse lagging on 40 inch screen

I have a 2.26GHZ Core 2 duo late 2009 Mac mini hooked up to a samsung led 40 inch disply with this cord.
http://www.monoprice.com/products/product.asp?c_id=102&cp_id=11215&cs_id=1024603 &p_id=9475&seq=1&format=2
The resolution is suprisingly good, the only problem i am having is that my magic mouse is lagging to the point where it is more than slightly annoying.  I have the sensitivity set to just about the most sensitive setting but it doesnt seem to really make a difference.  Should i replace the graphics card? if so how would i go about doing that?

The problem with the Mac Pro and the Magic Mouse is infamous. The accepted, actual problem is that the bluetooth antenna, labeled "BT" on the bluetooth card is NOT an antenna, is mislabeled, and was installed by people who do NOT speak English, thus the label could be "Fire Hazard" and it would be placed anyway.
I have gone many rounds with this problem. If you have an airport card in your Mac Pro next to the Bluetooth Card, then, there is a fix by swapping wires which can be found all over the Internet.
You can also add a WiFi antenna to the Mac and wire it to the Bluetooth card. There are instructions for THIS also on the Internet.
Second, you can get an external Bluetooth USB dongle, and use that. Unfortunately, on all Mac OSX versions prior to 10.6, the dongle will compete with the internal Bluetooth, generally canceling bluetooth function altogether.
On my Mac Pro, under 10.5.8, with no airport card, there is no easy access to the spare WiFi antenna, and so, my fix was to simply, and carefully, unplug the bluetooth antenna from the bluetooth card, unscrew the two screws HOLDING the bluetooth card, and, again, gently unplugging the bluetooth card from its motherboard socket. It now resides in a drawer.
Initially, my external bluetooth dongle (Zoom 4314), while supplying Bluetooth, could NOT connect to my MagicMouse with hours of trying EVERYTHING. Oddly, it took the system, which is NEVER turned off (much easier on the internal RAID), an overnight "pondering" to allow my dongle to supply functional bluetooth. In other words, after a night of massive frustration, all is well in the morning and the MagicMouse is not the best thing since sliced bread. It's BETTER than sliced bread.
All that said... apparently, MacOS 10.6 actually disables the internal bluetooth card when an external Bluetooth dongle is attached. Bravo.

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    I had the same problem with my new Retina Macbook Pro and my Magic Mouse that worked fine on my previous 2010 Macbook Pro.  At work I don't have a wifi network so I share my ethernet connection via wifi so I can get internet on my iPhone and iPad during the day.  After reading this thread I tried turning off the internet sharing and it has cleared up all lag issues with the mouse.
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    Frerk,
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    Hello g:
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    <Re-Titled By Host>

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