problems with thunderbolt display

This problem only presents itself when my 27" TB dispaly is connected to my Early 2011 13" MBP. I have 2 256GB SSD installed with 16GB RAM. I am using a magic mouse and the bluetooth keyboard.

When my TB Display is connected to my MBP the magic mouse is behaving strangely. It loses connectivity and then will reconnect. It also is not tracking well at all. The mouse will jump places on the screen, delayed response, and skip A LOT. Again this only happens when it's connected to the TB display.

I have tried resetting SMC and PRAM. I have also tried a different magic mouse and the problem still persists. Apple "Genius" could not help me at all. Sometimes restarting or shutting down will help for a short while but the problem always comes back.

Does anyone else have this problem?