Hi,
This sluggish mouse problem after installing VMware tools is not guaranteed that the Display drivers will be updated as well to SVGA 3D, I have seen many times with Windows Server 2008 R2 VMs where this driver is not updated especially after conversion. Funny thing the same VM converted again and the SVGA 3D driver is updated, there is no consistency and ESXi version is 5.1
NIkhil