I'm also experiencing this after upgrading from Intrepid to Jaunty.

The problem might be related to this one: 
https://bugs.launchpad.net/ubuntu/+bug/357901
However, with ATI graphics card and proprietary drivers, it happens 
independently of whether Xinerama is active or not.

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Xorg mouse artifacts when moving between displays using ATI's driver
https://bugs.launchpad.net/bugs/364983
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