I have been fighting the disappearing cursor problem since 2007 and still there is no FIX. There are lots of work-arounds but no real fixes. Microsoft had washed their hands of the whole deal and refuses to do anything about it.
My experience has been on two computers, an HP 32bit and an Emachines 64bit, Windows Vista Home premium and Windows 7 Home Premim, a Logitech optical trackball and a Kensington optical trackball. The same problem occured in all cases. In fact, the problem did show itself with the original mouse that shipped with each machine, but was not as severe.
I have continually researched the internet for a solution since 2007 and have yet to find a real fix. Logitech and Kensington both say that this is a Microsoft problem. I tend to agree with them.
I would appreciate any assistance in this that might be available.