I am still getting 500ms+ mouse and keyboard lag in game as well as in menus. I tried disabling vsync and mouse acceleration by editing the .ini which didn't help. Are there any other solutions? Are other people having this issue?
The mouse is also very slow even with windows speed turned all they way up.

Windows 7
NVidia GeForce GT540M
Quad Core intel i5 2.3GHz

I am using the recommended graphics settings. Needless to say, I am very disappointed.

Opps. Posted in wrong forum.