I manage to solve this mouse pointer problem by increasing the video
memory on the BIOS settings of my laptop from 1MB to 8MB.

Now the mouse pointer does NOT disappear when I:
- come back from console.
- come back from suspend & hibernation

Hope this information helps! It worked for me.

DELL D505
Video: 64MB shared
Ubuntu 6.10 Edgy
USB mouse

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mouse pointer disappears after switch to console or resuming from sleep
https://launchpad.net/bugs/67196

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