MaLa is a GDI application, so it doesn't need nor use Directdraw / Direct3D to do what it does. Someone with more knowledge on this please correct me!!
I take it Windows itself doesn't exhibit this jumpiness? Under MaLa's display options (right click » Options » GUI » Display) do you have an appropriate resolution picked for both your monitor, and the layout you're using? (if you're using the default "Space Invaders overlay" one, you should have no problems I think). Try forcing MaLa to run in a display resolution you know works.