Same bug here.. Also in Lucid 64.

Changing the cursor theme only works if you disable the desktop effects.

Other problem relating desktop effects, it was trying to view full-
screen videos (but it is also works Ok without desktop effects).

(By the way, Congratulations to the Ubuntu Team for the new Lucid Lynx
version just released.. It looks awesome and has enhancements in many
other areas).

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Cursor theme in appearance preferences does not change when compiz is enabled.
https://bugs.launchpad.net/bugs/356309
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