Mouse cursor moving going back to orignal position. PLEASE HELP!!!

I am desperate, I have tried everything I know of, but no luck.
My mouse cursor is stuck above the lower left corner of my screen. When I move the mouse, the cursor moves and as soon as I stop, the cursor goes back to the same position。
I have restarted my iMac, repair permissions, tried different USB and bluetooth mouses, also did the command/option/P/R restart and nothing changes.
This happen suddenly, it never happened before. Now my iMac is unusuable.
This is my setup:
iMac intel core 2 duo 2.4GHZ
4GB Ram
Mac OS 10.6.4
Is there something else I can do?
Thank you for your help.

Ok, that would be the Mighty mouse.
So what settings do you have here:
System Preferences: Mouse
How about System Preferences > Universal Access > Mouse & Trackpad
Screensaver> Hot Corners?
For hot corner info, see this video:
http://www.ehow.com/video4445858understanding-hot-corners-mac.html

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