Sorry, I was wrong about Parallels VM:

> Near the same problem I can see when running Ubuntu/Xubuntu inside Parallels 
> virtual machine (without Parallels Tools installed).
> But in Parallels vm cursor flicker all the time when moved (even without any 
> button pressed) and disappears when non moving
> (cursor can be visible only when moving). I think that's another problem, but 
> possibly related.

No, in Parallels VM is exactly the same problem. Cursor doesn't blink
after reboot, X restart or resolution change(!). But after launching
Software Center (switches cursor to animated) mouse pointer begins to
flicker. After reboot, X restart or resolution change cursor begins to
behave normally again.

So it looks like problem is in "default" driver that is used when
nothing better is available.

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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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