Hi
Its kind of funny how similar ideas we come up with.. When ADI came up with their mems accelerometers, I had plenty of ideas on mind. This was one I actually tried, I made project of it for my linux driver course with my friend at our university...
Anyway We tried location approach, that didn't work great. We ended up using it just by tilting it. I think the problem was 2 axis accelerometer, its impossible to distinguish between tilt and actual location movement. You might have better change with 3 axis device and trying to figure out the position with earths constant 1g down. Together with a gyroscope it would work for sure, but those are too expensive for commercial mouse type products..
just my two cents. Have fun with accelerometers, those are great toys to play with
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tn