Hm and about which problem we are talking? From screenshots i though the problem is that cursor is not in middle of screen after mouse reset. Because you wrote, “you can see the target and where it actually ends up.” If is not in middle after reset then it breaks absolute mouse.
Just now I notice that svn core correctly set cursor position, normal core does it a bit off. I must check why is there difference, maybe bug.
If the cursor is in middle after mouse reset and emulated program does not manipulate with cursor position then it should work.
Star commander seems works fine with enabled svn core, at least after in minutes of testing