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Olympus
Engaged
I use an excellent multi-monitor program called Actual Multiple Monitors. It has a hotkey that will "Lock Mouse", so that the mouse cursor won't go outside of the window frame of the program you're using. I use it all the time when I play games, including SWTOR.
Update:
Since I got a request from a friend ofr the same thing, I whipped up a small script to automate this. Have a look here: Lock mouse cursor within a window for games.