I managed to reproduce this problem by turning on the following setting
under Compiz, using `ccsm`:

ccsm > Enhanced Zoom Desktop > Mouse Behavior > Hide Original Mouse
Pointer

Turning this switch off did not fix the problem, even after restarting
the browser. Earlier, system had been running Intrepid and Jaunty for
months with no problems, until I made this change.

Hope this helps the investigation.

-- 
firefox: mouse pointer disappears while page is loading
https://bugs.launchpad.net/bugs/163047
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