As far as I know, the optical sensor in the MX1000 is identical to the optical sensor in the MX500/MX700 series mice. [I suppose there may be some minor differences, e.g. the MX1000 sensor is tuned to infra-red, rather than red light].
The only apparent difference is that the MX500/700 use a single LED to illuminate the surface, whereas the MX1000 uses a single laser.
The advantage of the laser beam is that it can be collimated so that it appears to diverge from a point source, whereas the LED source can't be focused as perfectly. This, and the tendency of laser light sources to 'speckle' (sparkle) means that the sensor can pick up a much higher contrast image - even when the mouse is used on very low-contrast surfaces e.g. glass.
If you aren't clear just how an optical mouse works, it's pretty simple:
The mouse contains a lamp (LED or laser) which illuminates the surface.
A video camera in the mouse takes images of the surface.
A CPU in the mouse compares frames in the video, and finds matching areas, then uses the matching areas to calculate the movement.
The video sensor in the mouse is arranged to examine a very tiny area (about 1mm x 1mm), it takes low res images (resolution is 16 x 16) at high frame rate (about 4000 fps).