I too am using exactly the same netbook with Ubuntu 12.04 installed. I
also have a similar problem with a cursor that flickers randomly and
sometimes disappears for a short time. Particularly when hovering over
website links or or icons particularly in System Settings. It can be
quite annoying at times. Googling the problem it appears that some
others are also having similar problems. I am aware that in Ubuntu there
are no Graphics Card drivers for this particular Netbook as yet and as
such it can only run in 2D mode. Maybe the issue is there with the
Grapics Card.

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https://bugs.launchpad.net/bugs/1034470

Title:
  Mouse pointer flicker or disappear when moving it with left mouse
  button down

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