The new mouse smoothing makes the mouse movement a little better, but the biggest problem, mouse skipping, still remains.
By mouse skipping I mean an artifact in the mouse movement, where the mouse input is not registered when it comes in too fast for the game to handle. In other words, some mouse input is skipped when the mouse is moved fast.
The problem is especially severe for players who prefer low mouse sensitivity. For example, my mouse sensitivity in windows (xp) mouse control panel (native winxp control panel, no other mouse drivers installed) is about half the sensitivity slider. The mouse itself is Logitech mx518, in 1800dpi mode. When I move the mouse across the desktop space (1280x), it requires about 4 inches of movement to go from the left to the right side. In the game, my mouse sensitivity slider is all the way to the left.
What this configuration gives in the game is the following:
1) When I move the mouse at medium speed, it makes a 180 degree turn in about 3 inches of movement on the mousepad.
2) When I move the mouse fast, by the same 3 inches on the mousepad, it makes a turn that is more like 90 degrees.
3) And finally, when I move the mouse really fast, it makes a small degree turn and then locks up the movement on the screen completely.
Here's a couple of videos that demonstrate this behavior. The first video is mouse movement in quake3. The second, in arma2.
Now, the question is: are the developers going to fix this?