David Brackeen wrote a Java game programming book that I found very helpful. One of the first code examples that he gave was for an InputManager through AWT that provided the FPS style functionality. I cannot remember the name of the book off of the top of my head and my copy of InputManager is on a different computer (however it shant be hard to grab it, if you would want it). IMO it ran very smoothly and it used Robot to move the mouse back to the middle of the screen after every mouse event. Brackeen warned that the transparent cursor might flicker to show the true cursor, but I never noticed any problems with it.
It could be your computer, too, that has slow Robot code, so you could try another computer with you own implementation to see if that fixes everything.