I can confirm that this is most likely a bug in the kernel itself, as I
have exact same problem after upgrading to 2.6.35 on Gentoo. Also,
suspend/resume brings the cursor back.
** Also affects: gentoo
Importance: Undecided
Status: New
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[855gm] 2.6.35-14: Invisible Cursor
https://bugs.launchpad.net/bugs/614176
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