Hi, if you have overclock in ATI catalyst control center, go there and set it to default clock speed.
If you didn't overclock, then skip to next step.
Download and run the AMD GPU Clock Tool. It will display your default clock and memory speeds.
You can overclock to anything you want, but just for desktop use, set each to 50 higher only. Then click the button Set Clock. Close the program.
Unlike what I posted above, you do NOT have to adjust the voltage. A tiny overclock will do the trick.
That's it. Now your mouse cursor won't enlarge and you can watch videos without computer asploding =)
Last note, you should do this right when you boot into windows, I have GPU Clock Tool in my startup folder. Because once the mouse enlarges, you can't get it back to normal size, even with this trick. It will still stop the crashes however.
Even the latest Driver did not fix this, so this thread is still valid.