Mouse skips on heavy network load

When i increase my network traffic my mouse skips! It's very very annoying, worst when streaming large files on the home network or transferring files through the home network. When the load is less i.e. downloading from the internet this happens much less frequently.

e6850 @3.8ghz
netgear 311T 802.11g
logitech g7 laser mouse
gigabyte p35c-ds3r
8800 GTS
2G crucial ballistix

I've updated to the latest drivers for my network card. I've updated to the latest setpoint software for the g7 mouse. I have pointer acceleration turned off. my nvidia drivers are up to date as well. I have no uninstalled devices in my device manager. It's really annoying to not be able to use my computer properly when transferring files across my network ... any thoughts? Thanks in advance.

edit: My CPU usage never seems to go over 2 or 3 percent when transferring across the network.