I had the issue of not being able to set the position with the hardware mouse, but using the java.awt.Robot class, you can do it (at least on machines without security against it…seems like it should be OK)
Can you clip the hardware cursor to the window, like with AbsoluteMouse?
EDIT: anyway, I solved it in the end with usingDelta and a bit of rewriting to use the hotspot coordinates it returns. Seems to work fine. Probably the small jump was because setLocalTranslation doesn't account for the hotspot.