OS X V10.7 Lion :: Arrow Cursor Pointer Jumps And Teleports Across Screen Every Second

my iMac has this glitch, the cursor jumps or teleports across screen every second. I move it and then it jumps again, always jumps to the same place, same exact pixel everytime. I try to move the cursor quickly (to open safary or hit stand by) but no matter where the pointer is across the 27" screen, it teleports like a clock. 

I changed batteries on the trackpad and magic mouse and it didn't work. I turned mouse off, left trackpad on and it didn't work. I tried using a wired mouse and it didn't work. this is obviously not related to the input device. 

I would like to restore the input driver with time-machine but I have no idea where the drivers reside in the machine. I also have no idea how to roll-back or reinstall such drivers on a Mac. 

this is not the jittery, erratic, jumpy bug. When this glitch is triggered and I have absolutely no clue how or why, sometimes it starts 1 minute after reboot, sometimes 30 minutes; when it is triggered it starts to teleport every second, the arrow jumps to the same spot. it's unbearable since it renders the machine useless. I have to press the power button to send it to sleep, resume and then the glitch is gone, only to come back 5 or 30 minutes afterwards. 

Finally, this thing happened last year in november. I wasn't able to solve it back then so I had to reinstall the whole OS Lion, that meant waiting 6 hours for it to download from the appStore (because Apple doesn't allow me to keep a copy LION on my system). I think that's plain silly since it's obviously a very mundane (but annoying) glitch and there's got to be a workarround that doesn't require system restore.

Info:
iMac (27-inch Mid 2011), Mac OS X (10.7.3), 8gb, 1Tb, iOS Lion, wireless device