Hmm. When doing fine positioning if you click - hold, then drag it should drag slowly. If you click + flick it will pan. Otherwise, it may be a mouse sensitivity issue that could be addressed by adjusting the mouse settings in the driver (Windows) or System Preferences (Mac)
It happens when the mouse is released after positioning the image. I should have mentioned that.
The mouse works perfectly under other circumstances - this leads me to believe that the issue exists within Photoshop.
Just left click again to stop the pan, or turn off Open GL in Preferences.
Apparently, the only solution is to turn off OpenGL.
That kinda sucks because I like the flicking effect (when it works).
It can work right - I've never seen the behavior you describe.
Is your system a PC system? If so, display driver updates often correct problems with OpenGL. Visit the web site of the maker of your video card and download/install their latest driver for your hardware and specific version of OS. Then turn on OpenGL again and try the operations again.
If you have a Mac I think you're stuck with whatever display driver OpenGL implementation Apple has approved. Not that Apple's attention to quality is a bad thing, but you just can't easily go get the very latest driver set that nVidia or ATI has developed, and they're changing these drivers to fix OpenGL issues ALL the time. Someone more experienced with Macs please correct me if I've misspoken here.