I ran across a post on the Seven Forums that completely helped my issue:
http://www.sevenforums.com/hardware-devices/9035-windows-7-mouse-acceleration-help.html
I've found a way to control mouse acceleration in windows 7. It does not completely removes the accel but u can change the setting.
Go to Control Panel>>Ease of Access>>Ease of Access Center
Now click "Make the mouse easier to use" option. Under "Control the mouse with keyboard" section, you can see a button named "Set up Mouse Keys". Click it. There you can see a section called "Pointer Speed" where there are two sliders for 'Top Speed' and 'Acceleration'. Adjust both of them to your liking. If you keep accel slider to slow, you will notice heavy mouse accel whereas if you set it at fast, it pretty much feels like no accel.
For me, both sliders to extreme left (high and fast) together with 1000Hz polling rate seems comfortable but its all up to you and your liking.
Again i wud like to tell that it wont remove the accel at all. It just decreases the accel. Play with these settings to get the right feeling until someone posts a way to completely remove this mouse accel.