Debian Bug report logs - #241717 > xterm: various colour problems (mouse cursor color, text colours) I don't see this behavior when I'm running xterm - it probably depends on resource and environment settings.
The description is a little confused - I'm not entirely certain whether the complaint is about the rectangular text-cursor, or the mouse pointer. For the former, xterm tries to determine if the colors coincide with the foreground or background colors. For the latter - that's set outside xterm.