I've got the identical iMac as you. But from what you describe, maybe your pro mouse isn't the entire problem. But I've noticed the mouse can be effected by the surface it scans.
Example: My mouse is on an area of the desk where the (simulated) wood grain is noticeably large. During Quake3 levels, the mouse would sometimes go off in an entirely different direction than I was moving - very disorienting! So I slipped a sheet of HP bright white ink jet paper under it and the problem went away. I plan to replace it with a mouse pad in the near future of course. But from my experience, it seems that wood grain and perhaps other non-uniform surfaces can confuse the pro mouse at times.
Re freezing cursor keys.
I've had something similar happen when disconnecting from a dialup connection. The keyboard and mouse button appear to lock up for about 20 seconds during the disconnect. The mouse pointer still moves at this time. It's rather annoying to have remote access lock up the computer for such an unusually long period of time. OK, I'm still relatively new to Mac so maybe this is normal. But I will say that this is only occurs during disconnects on my iMac. So if it happens on your system at times other than modem disconnects, then perhaps your iMac has a problem...joe
[This message has been edited by joe (edited 08-30-2000).]