I have a couple guesses as to why Jaws doesn't see the cursor movements fast enough. They could be dead wrong of course...
Linux cursors generally don't blink. But Jaws uses cursor blink as (one of?) the means to determine the cursor's location. Can you configure your terminal program to blink the cursor?
I'm using Jaws 14 which may make a bit of difference here. Under Miscellaneous Settings in Settings Center there's one called Text Out Delay. It's set to 0 by default but if you increase this it delays Jaws from speaking for the specified number of milliseconds. This might possibly help to prevent Jaws from talking before it figures out the cursor has moved. Try it and if it doesn't help, you might want to set it back to 0.
And, if you really want to grasp at straws, read default.jcf with an editor. There may be something in there that isn't accessible through Settings Center that you can change on your own; I seem to remember something about the amount of time Jaws waits to give up on locating the cursor.
WRT stability in Jaws 14, try applying all the updates and then destroy your personal settings. I think there were problems with early releases of 14 that have been addressed recently. Just my two cents worth...
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