Had this problem this morning too when I installed 9.10. Tried different things 
and ultimately I reconfigured my BIOS to use 256 MB instead of 64MB (default) 
for the on board video. And the mouse cursor is right now :) Give it a try . 
Note I have 2GB internal memory (and also an ASUS M2V-MX board)
Now I only have to learn my daughter handling dual boot systems ...

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[K8M890]Square cursor with Ubuntu 9.04 livecd, during VNC connection
https://bugs.launchpad.net/bugs/377402
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