Some of our users have installed Mouse Without Borders and I wanted to know if it is possible to intercept the traffic being sent between the two computers and read it in some meaningful manner. I was looking at the PCAP file of the traffic between the two and I couldn't discern anything, but I also am not an expert at reading packets and there is no mention of encryption anywhere about Mouse Without Borders. If the traffic is readable somehow, then user's password and other sensitive information could easily be read.
From the support site, it says that communication is encrypted.
The comment is oblique and there is no overt indication in the documentation that things are encrypted. This is an example of the question being asked by others with no satisfactory answer.
From Wireshark, it LOOKS encrypted, but there is little from the developer on how.
If you are asking because you want to know whether using Mouse Without Borders is safe in the presence of eavesdroppers: Given the lack of documentation on MWB's security/encryption model, and given the lack of other positive indicators, I would be cautious about relying upon MWB to be secure. Just because it looks scrambled in Wireshark doesn't mean that the system has implemented the encryption properly in a way that is truly secure.
If you are asking because you want to set up a network intrusion detection system to try to scan for some sort of problem in MWB traffic: sorry, I don't know. I suggest contacting the vendor that supplies your network intrusion detection system (as ultimately it would need to be supported by them anyway).
If you are asking because you want to spy on other users without their authorization, then this probably isn't the site to get help on that.