I have the same problem in AMD 7500 HD and the radeon driver. (fglrx
never worked for me no luck)

Ubuntu 12:10
xserver-xorg-video-radeon               
1:6.99.99~git20120913.863 amd64

I had also tried changing the desktop wm from gnome(unity) to xfce4
problem persists as well

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https://bugs.launchpad.net/bugs/1071722

Title:
  Mouse cursor duplicated in dual screen setup

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