This is fixed in nvidia's 9625 beta drivers. However, these aren't even in Edgy yet (they are still in beta, of course).
** Bug 29240 has been marked a duplicate of this bug -- Busy cursor flickers alot https://launchpad.net/bugs/31295 -- desktop-bugs mailing list desktop-bugs@lists.ubuntu.com https://lists.ubuntu.com/mailman/listinfo/desktop-bugs
