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You are not supposed to use optical mouses on reflective surfaces, and I'm guessing the top of your desk is polished, which is why you cant use it. Make sure the surface you use isn't reflective, and preferably has some type of distinguishable in it. I use mine straight on my synthetic wood desk, but I've heard a small checkerboard type pattern is ideal for optical mice.
I have an mx700 as well, and it occasionally will lag for a bit. I'm pretty sure its just radio interference. Make sure the receiver is as far as possible from things like your monitor that make interference.
And don't worry about overcharging, it will only charge as much as it needs to, then the green light will stop blinking, stay solid for a bit, then go out.
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