I had exactly the same problem! I managed to solve it by changing 2
options in the xorg.conf:

-       Option          "Protocol"              "ExplorerPS/2"
+       Option          "Protocol"              "IMPS/2"

and

-       Option          "Emulate3Buttons"       "true"
+       Option          "Emulate3Buttons"       "false"

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

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