http://www.displaylink.com/support/downloads.php
DisplayLink USB Graphics Software for Windows
7.5 M2
31 Mar 2014
I installed the above drivers and it didn't help with the mouse lag.
My mouse is still not smooth and its extremely annoying.
I tried plugging the mouse into the usb port on the laptop and that didn't help.
Is this a graphics issue?
-- Update 04/11/2014 --
I plugged the hub into the USB 3.0 port and now the mouse is ok. Seems that I was plugging the hub into the 2.0 port which caused the degraded performance.