Change Mouse USB polling rate?

I have checked the polling rate with USBprober and it seems that its currently at 10ms.

That's one-hundredth of a second. Making the interval smaller isn't likely to make a noticeable difference: if you are getting sluggishness it's more that the driver concerned isn't communicating continuously, though I don't know what you can do about it. I should ask Logitech.

But is there a way to change the polling rate?

Not AFAIK but if there was it might be in the Logitech software?

It is unlikely that an inadequate polling rate is the source of your problems. I know you said that you downloaded the latest drivers, but are you aware that Logitech just released a new Snow Leopard-compatible version of its Control Center software a few days ago (February 12th)? It is available at this page.) Installing this software may help, if you haven't already done so.

Also check the items mentioned in the Logitech FAQ, Cursor does not follow MX 1000 mouse movements to see if any apply to you.

The last comment there, "If the cursor speed is set too fast, the cursor can move so fast it will appear erratic" seems a bit cryptic, but it suggests reducing the 'cursor speed' (tracking rate?) may help.

Historically, Logitech's support for OS X has not been the greatest. At one point it was so bad that many Mac users were reduced to trashing the supplied drivers & going without the features it enabled when they upgraded their OS. This has improved somewhat but there still seems to be a disparity between support for Windows & OS X. For instance, I'm not sure that the Control Center software for OS X is directly comparable to the Setpoint software for Windows. It doesn't help that almost all of the Logitech mouse support articles refer to the Setpoint software, as if the Control Center software didn't exist.

It is also worth mentioning that the MX1000 is ancient by computer standards -- the setup guide shows a picture of an old PowerMac that hasn't been made for many years. This might explain the relatively slow polling rate compared to more recent Logitech products: more frequent polling uses more CPU time & it may be that Logitech has not set a faster rate for the MX1000 in the Mac version of the software, either by intent or oversight. If the newer Control Center software doesn't help, you might want to contact Logitech about this, although I doubt that much will come of it.

The only other thing I can suggest is to make sure the base station is not placed too near the Mac or other electronic devices. It could be that interference or a weak signal is the cause of the sluggish response.