Still haven't found a way to get rid of this blinking cursor.

It is not only the case with Unity(tested with Ubuntu 12.10 fresh
install), but also with xfce (tested with Xubuntu 12.10 fresh install,
fglrx install per apt-get install fglrx fglrx-amdcccle, all updates
installed).

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https://bugs.launchpad.net/bugs/1067320

Title:
  1002:6798 [fglrx] VT cursor is visible and blinking on top of Unity
  Radeon HD 7970 and 5450

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