Steam Controller / Simultaneous Mouse and Gamepad Input Issue

So I'm trying to play GOOH with the Steam Controller and I'm running into a problem where the character jitters when there is simultaneous gamepad and mouse input. Here's a video:


I suspect what's happening is the game is constantly switching between K+M mode and gamepad mode and for some reason this causes the character and/or camera to jitter. More importantly it also causes the camera controls to 'grind' a bit as the game seems to ignore mouse input during the frames when it's in gamepad mode, resulting in laggy and choppy camera movement when the character is moving; while stationary and completely in mouse mode this doesn't happen and the camera controls normally.

Now the thing is, SR4 didn't have this problem. I played through it with the Steam Controller perfectly fine. Button prompts would flicker between keyboard and gamepad buttons, but there was no character/camera jitter and the game controlled perfectly fine at all times.

I have no idea what's changed in GOOH that causes this issue, but I figure this is the place to ask for a solution. Any ideas? I would greatly appreciate any help, since I'm finding it difficult going back to a standard dual stick controller.
 
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