Mouse won't move to different monitors in Remote Desktop

I'm having an issue where when using Remote Desktop 3.8, I can connect to my other macbook with two displays, however, I am unable to move the mouse to the other displays. I can see all three desktops in Remote Desktop and the mouse moves on the third monitor. I can control windows in the third monitor, however, when I move it to another monitor the mouse will go to the edge of the third monitor and never move to the other displays. I can see the mouse on the screen move up and down like there isn't a monitor there. When I disconnect, the mouse moves fine between displays. Any why the mouse wont move to the other displays?