I was having this issue with Ubuntu 8.04 + Compiz, but I have fixed the problem:
I realized that compiz was keeping its settings in a flat file instead of GConf.

Open the "Add/Remove Applications Manager"
(Applications > Add/Remove...)
Next to "Show:" select "All available applications"

Search for "Compiz"

Install "Advanced Desktop Effect Settings (cssm)" if it is not already
installed.

Open the "Advanced Desktop Effect Settings"
(System > Preferences > Advanced Desktop Effect Settings)

In the left column select "Preferences"
Change the "Backend" to "GConf Configuration Backend"

Now Compiz will store it's settings in the same place that Metacity does
(and fix this cursor problem).

-- 
compiz doesn't notice change of mouse pointer theme
https://bugs.launchpad.net/bugs/141500
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