I had the same problem with my 1525. Had not used the laptop much since I bought it about 8 months ago. Main purpose was for taking on vacations. Just came back from vacation, and it was terrible trying to write any e-mails. Cursor would jump into lines that had already been typed and open up windows by itself. Even tried using my wireless mouse, which did not help at all. Went onto Dell's site again, using my Service tag number. There were several driver updates that could have been installed but the two that I did install was one for the BIOS. It was going from my current A11 to A16. Also there was a driver for Mouse / pointer R176423. When I went to install the R176423, it said it was the same as what I already had, but I re-installed anyway. Afterwards, I installed the BIOS revision. It's been working perfectly now for the past hour at least. Not sure if it was the BIOS,or the mouse driver, or the combination of both, but it's working so far!
Hate to tell ya, but unfortunately, its an issue with that line of Dell notebooks, especially the Inspiron series. Sometimes the mouse pointer drifts completely on its own. You can try plugging in a PS2 or USB mouse and then disable the mousepad. 90% of the time it helps. Good luck.
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