I suspect that adding an xorg.conf with
Section "Device"
Driver "nouveau"
Identifier "nouveau"
Option "HWCursor" "false"
EndSection
will resolve this for you by just not using the hardware cursor. Does
that fix it?
** Changed in: xserver-xorg-video-nouveau (Ubuntu Lucid)
Status: Triaged => Incomplete
--
mouse usage causes Xorg CPU usage to spike, and mouse pointer becomes less
responsive
https://bugs.launchpad.net/bugs/558657
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