A few points
1 - You will get MORE jitter if you use 960 PPQ. (huh?). Its true. If you want more reliable timing accuracy, then go with 480, or if you can, go even lower than that. The only downfall of lower PPQ is that you are introducing a very subtle form of quantizing to whatever you record. However, let's do the math:
at 120 BPM, that is 2 quarter notes per sec. That is 1920 ticks per sec, which is sub millisecond.
So right off the bat, changing to 480 PPQ will give you theoretically around 1ms tick timing.
However, what you need to know is that the Windows OS is not even capable of reliably providing timing even that low. Many tests and studies have been done about this. As soon as you try to get down to 1ms timing, or even somewhat higher...the error rate goes up...which is what gives you real jitter. This is particular true while recording your midi track from a midi keyboard. USB adds even more latency and jitter to the mix.
If you could, for example, live with say 5ms ticks, then the jitter is a lot less, because the OS timers can keep up with it more or less error free.
200 ticks per second = 5ms ticks. At 120 BPM that is only 100 PPQ.
Moral of the story, lower PPQ values will give you more reliable and error free, reproducible playback. It will play back more exactly what you see on your PRV. As you raise the PPQ, more and more jitter will be present. The downside is that if you want to nudge notes forward or backward by 1ms or whatever...then you need the higher PPQ and just have to live with the jitter. One situation where you might care about that is if you're doing film scoring or something where you need to line up beats on frames, etc.. Having more PPQ allows you to calculate tempos that are more accurate for those hit points. In that case, you're not using a midi keyboard to record, so the Windows OS crappy timers are not relevant. Also, once the midi track is recorded, if its playing back through a VSTi, then when the track is frozen or a mixdown is done, in theory there should be no jitter. If it has to play back through external midi gear or even using a virtual midi cable inside the PC...then the jitter can be bad and there is not much Cakewalk can do about it.
2 - Cubase is notoriously worse