Seems like it was Optifine. now I just have to decide what I hate more, the glitchy Jabba barrels and Thaumcraft ore blocks + the stupid shift issue I posted about originally or the..... Fog (I really hate fog) if any of you know of a way te remove fog without optifine plz let me know.
Edit: After 5 min of playing with fog I decided that optifine was def the way to go. Funny enough after re adding it to the list of mods to load the issue with my mouse did not return.
So if you are having similar problems my advice is remove optifine from your mod list play for 5 min freak the f!@# out, re enable optifine and you should be fine xD (well except for the glitchy textures but I think we all accepted that a while ago
)