This took me a while to figure out. I have Fences running on Server 2008 R2, Win 7 64 Premium, Home, on several machines. It works perfectly on every machine but one.
On one machine I noticed that my (touch mouse) would seem to hangup slightly as I moved the cursor across the screen. This was very aggravating as it often made selecting a button I needed to click on almost impossible to move the mouse just a fraction of an inch over. This machine uses double monitors, but the fences are only used on the right most monitor. Over time I realized that the mouse was only hanging up on the right hand monitor but not the left.
After trying various things like removing software, killing processes to try and figure it out, It struck me that it seemed to be dragging in the area of where the fences actually are located.
I uninstalled Fences and rebooted and the problem went away.
I thought I would mention this to see if any other users with the Microsoft Touch mouse have experienced this.
--Bruce D. Meyer