1. go to: control panel > mouse > pointer options [tab] then pull the dial down. that should slow down the mouse. Also I'm used to playing games witht eh mouse extremely fast, it just means you have to move the mouse less.
That's really fudged up dude, it looks like it might be faulty to me, have you tried it on all sorts of different surfaces etc? Have you tried an older/newer driver version? Cleaned the lense?
I'm using the same mouse, its just like any other mouse but more sensitive, I'd be inclined to say your mouse is fubarred or you're on the wrong type of surface as well
Sounds like your mouse is screwed to me :\. Have you tried it in another computer? Also check for any gunk around the optical assembly.
I'm guessing that because its a microsoft mouse it doesnt come with drivers. But if it did and you installed them, try removing them, and if it did and you didnt install it, try installing them. This is after for you try it in a different computer.