Windows 7 Sound Issue/ Cursor jumping issue

so I guess a pretty common Issue but I still don't know how to fix it...I spent all day yesterday looking for the issue but I couldn't find a solution. I installed Windows 7 professional on my Lenovo Y550 laptop on Friday and things were great in the beginning. It wasn't until I noticed that when I plugged my headphones into my headphones jack that my computer would not only not play music through the headphones but it wouldn't even recognize the headphones (under the playback devices). I tried playing music through my internal speakers and it worked fine (I was using a pair of USB speakers and they worked fine as well). I was searching on the internet and I discovered that a [possible] fix would be to download the newest audio drivers off the Realtek website so that's what I did. After installing the drivers successfully I got my hopes up when I plugged my headphones as it the bubble popped Information: you just plugged a device into the audio jack." Unfortunately sound was playing through the headphones. And to make matters worse sound no longer comes out of my internal speakers. I know they both still work because I used the headphone the jack I installed Windows 7 and my speakers still play the Lenovo start-up sound. My computer also still plays music via the external USB speakers.

Update: I rolled back my audio driver to the one I previously had. My internal speakers now work but when I plug my headphones in they aren't even recognized on the computer. This is just really stressing me out

Problem 2: I'm also experiencing the cursor jumping around quite a bit when I type (even this messaging). This problem isn't the end of the world but it's quite annoying.

Computer Specs:
Lenovo Y550
Processor: Intel Core 2 Duo P8600 @ 2.40 ghz
RAM 4.0 GB
Windows 7 Professional 64-Bit operating system

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I don't know what kind of mouse you have, but if its one of those cheap ones, you should get a better one.
My mouse jumped too, even if its a laser mouse, i have to use a pad for it.
If you're using a laptop, don't you have an Fn+F? (F1,F2..ETC) key combination that sets these things?

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