I have a similar problem since upgrading Lucid Alpha 2 to 2.6.32-12.

My system boots to a different virtual terminal which does display the
cursor, I then use CTRL+ALT+F7 to show the login screen.  But then my
system just freezes.

My system has also worked fine on all prior Ubuntu versions, and it
still boots fine when using 2.6.32-10.

-- 
Lucid 2.6.32-12 cursor invisible
https://bugs.launchpad.net/bugs/515501
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