I experience the same problem with Ubuntu 12.04 and Unity-2d on my Intel
dn2800mt motherboard with Intel Atom N2800 with Cedar Trail graphics.
Installing the proprietary drivers for the Cedar Trail fixes the mouse
pointer flickering, but it leaves the system practically unusable. The
Xorg process eats the CPU to a degree where even simple browsing ans
text editing tasks becomes impossible. It seems that especially Firefox
is causing problems on this configuration.

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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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https://bugs.launchpad.net/ubuntu/+source/xserver-xorg-video-fbdev/+bug/1034470/+subscriptions

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