What is smoothed data stream?
Is it the smoothedCoordinates from GazeData? i am using that only in my program.
Yes that is the smoothed data stream. If you would like more or less smoothing, you can implement that yourself based on the raw output.
And I searched the Eyetribe.cfg file in my machine but it is not there.
Do i have to install any additional setups for it?
If the file is not there, you can create it manually yourself in the path
mentioned here.
Another thing is if I reduce the framerate in Eyetribe.cfg file, will that resolve my problem?
I am still not certain I understand what you problem is? If you are expecting the same behavior and precision as moving a mouse from an eye tracking system, then your problem is unsolvable. The gazepoint will always move because you eyes always move. Even when you think your are holding your eye still and focusing on a point, your eyes still move due to human physiology.
If you wish to design a UI for eye tracking, then you need to follow special UX paradigms. There are plenty of posts on that topic in this forum. Maybe reading some of these will help you solve your problem?