I worked around the mousepointer corruption on my system by

1.) Stopping X service and logging into the text console

2.) creating an xorg.conf via "x -configure" and copying this freshly
created xorg.conf.new to /etc/X11

3.) entering this option:

Option          "EXANoDownloadFromScreen" "true"

into the section which reads like this:

        Identifier  "Card0"
        Driver      "ati"
        VendorName  "ATI Technologies Inc"
        BoardName   "RV610 video device [Radeon HD 2400 PRO]"
        BusID       "PCI:1:0:0"

YMMV as a Lucid is working here.

-- 
Screen corruption when X starts
https://bugs.launchpad.net/bugs/619365
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