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Some of the reasons and solutions I found so far are: Using an external keyboard solved the problem, but that is not the solution we were looking for. We bought the laptop to use it without an external keyboard and external mouse. We did not want to stop using the features of the laptop to get the cursor behave the way it is supposed to. The solution to cursor jumping problem was to use a utility called 'touchfreeze' which will freeze your cursor while you type, thus avoiding the jumping problem. Download the touchfreeze software from Google code website and install. It seems to have solved the problem temporarily.