Here is what Razer emailed me:
Please try the following suggestions and let us know how they affect the cursor movement of your mouse:
1. Install the latest drivers and firmware (if available) from www.razerzone.com.
2. Try cleaning the sensor lens with a Q-tip and some alcohol, let it dry for 5mins and try again. Please use Isopropyl Rubbing Alcohol 99% for this purpose. You do not want to use Rubbing alcohol that contains ethanol. Isopropyl Alcohol 99% or 100% pure is commonly found in most all drug stores and medicine cabinets. Further cleaning can be obtained by using some "air in a can" or "canned air" to blow out any dust on and around the sensor assembly.
3. Try using another mouse pad or surface and see what affect this has.
4. Try the mouse on another computer to see if you have the same results. It is not necessary to install the drivers, as all the basic mouse functions such as cursor movement should work without installing any drivers. This is otherwise known as Plug and Play.
5. When the cursor is not moving, do the buttons on the mouse work? Does the LED on the mouse light up?
6. Try using the mouse on a plain white piece of paper. This has actually fixed some cases for us and we want to try everything.