A few general things:
Does your mouse have custom driver software, as is often the case with gaming mice (and their myriad buttons)? If so there might be a conflict going on there.
In the Windows mouse settings, have you tried changing the various sensitivities and enhanced pointer precision on/off?
Do you have Windows' accessibility features disabled, along with their shortcuts? (The shortcuts can be particularly obnoxious, since they often overlap with gaming controls and can "helpfully" enable things that you don't want active.)
Is it ONLY the mouse pointer or do you find you're getting keyboard control stutter, sound stutter, etc, as well?
In the Dosbox .conf file for the game, is "sensitivity=100" or some other value? What about "output="? If it's "surface" or "overlay", try changing it to "ddraw", and vice versa.
Likewise, "priority=higher,normal" should be set as such. If it's showing anything else, change it to that.