I have been having a similar, but slightly different problem for over 1 year now. I have been digitizing soil maps from Africa and when I use the trace tool to make adjacent polygons, the cursor frequently flies off the screen to another vertex and I absolutely cannot get it to detach from that vertex and trace the line. The cursor is literally "stuck" to another polygon's vertex and when I try to break it free, it will float around, but it will not trace the line I have selected.
I teach at a university in South Korea and we called the ESRI technician out to look at the issue, and, predictably, could not get the problem to replicate in the 10 minutes he was slotted to be here. The problem seems to happen, as other posts indicate, randomly and after I have been working for a while. My research assistant and I will reboot the computer, and if that doesn't work, we turn off the computer, go for lunch and come back and get about 30 minutes of work in before it starts happening again.
I am a scientist. I believe in data reproducibility--not magic, gremlins or karma--but this is literally the craziest thing that I have ever seen from ArcGIS (and that is saying a lot). I have used ArcGIS since the mid 90s, and since the trace tool was developed, I have never had a problem like this.
David Wright
Department of Archaeology
Seoul National University
Seoul, South Korea