This bug was fixed in the package xserver-xorg-video-intel -
2:2.8.1-1ubuntu3

---------------
xserver-xorg-video-intel (2:2.8.1-1ubuntu3) karmic; urgency=low

  * Add 103_eliminate_cursor_flicker.patch and
    104_kms_allocate_one_bo_per_crtc_for_cursor.patch: Prevent the mouse
    cursor from flickering during animations (LP: #418703).

 -- Alberto Milone <alberto.mil...@canonical.com>   Mon, 05 Oct 2009
11:24:37 +0200

** Changed in: xserver-xorg-video-intel (Ubuntu)
       Status: In Progress => Fix Released

-- 
Busy mouse cursor flickers like mad
https://bugs.launchpad.net/bugs/418703
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which is the registrant for xf86-video-intel.

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