By now most people must be aware that VMware Tools in Windows 2008 R2 does not enable the WDDM display driver by default as per KB1016770.
Normally this requires manually updating the driver through the device manager. When you’re deploying hundreds of servers a scripted approach is preferred!
Step in DPInst… DPInst can be found in the Windows Driver Installation Kit which you can download here.
If you don’t want to install the whole Driver kit just look for dfx*.msi in the \WDK folder and install that for your revelant OS.
1. Copy DPInst.exe to the VM C:\Program Files\Common Files\VMware\Drivers\wddm_video
2. Run ‘Dpinst.exe /s /f /se /sw’
Thats all you need to do. On reboot the display driver is installed and there is no more mouse lag.