Heh I was just about to post that I figured it out. Yea it's the res fix. It seems that it hates that resolution. I set it to 1440x900 and it worked. Too bad. I wanted to play at 1920x1080. Does this have something to do with the ratio? I'm pretty sure at default (800x600 right?) res that when you get back your mouse it's centered on the crosshair. At least, that's how I remember it. At 1440x900 it centers near the wave meter thing. At 1920x1080 it centered on the fire button.
I'm gonna mess around and see what the max useable res I can get is.