Why does my iMAC display start jumping left and right by itself?

This refers to a 2011 27" iMAC upgraded from Snow Leopard to Lion. The upgrade seemed to go smoothly.
Sometimes the display jumps back and forth horizontally for a few seconds. It moves about an inch or so, not just one pixel. While that's happening the cursor is visible but the magic mouse doesn't affect it.
It usually happens while I'm editing text and I'm using the mouse to move the cursor to a new place in the text. However, I'm almost always editing text so I can't be sure it's associated with that. I use the iMAC for software development. I never play music or videos.
Do other people have this problem? Can anybody say why it's happening? Is there a way to keep it from happening?  In mouse preferences all the options are checked, which is the setting I want.

I gave up on the magic mouse a long time ago. Partly because of this "stray finger touch" issue and also because mine would occassionally disconnect for a while. No matter what I did (reboot, fiddle with the bluetooth control, turn the mouse off and on, etc.) it wouldnt' come back. And then a few minutes later it would suddently come back and act normal for another few weeks or month. Two Apple guys and the local apple store said "yeah sometimes they do that.. it's a pita". So I switched to a wired mouse that I had on hand and no problems since (except it uses up one of the USB connectors, or which there are only 4).

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