A better solution is adding an extra line (Option "SWCursor" "yes" )
in xorg.conf in /etc/X11/xorg.conf Device section.
In my case, the device section looks like:
Section "Device"
Identifier "Intel Corporation 82852/855GM Integrated
Graphics Device"
Driver "i810"
BusID "PCI:0:2:0"
Option "UseFBDev" "true"
Option "SWCursor" "yes"
EndSection
However, this only solves the cursor problem, not the icon disappearing
one. I might create a new bug-report for that.
--
mouse pointer disappears after switch to console or resuming from sleep
https://launchpad.net/bugs/67196
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