Can you try switching the graphics to low quality? A lagging cursor is usually caused by anti-aliasing (which is turned on with the high quality graphics).
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and while i'm on the topic of resolutions, why is there no widescreen support? is everyone at telltale running the game on a 17" CRT at 1024x768??
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This has been discussed in other places on the forum but the gist of it is that widescreen resolutions use a different aspect ratio than our games do. Supporting both would actually take a lot more work than people usually think, so for the time being, widescreen is not supported.