I suffered from the disappearing cursor problem recently to the point where I was going to dump Cursor XP (bought several years ago) -- it was looking like a sad day.  Then, out of the blue, I was retracing my recent ATI driver update and thought perhaps there was something added in the update that caused the disappearing cursor problem (everything was great with Cursor XP until about a month ago - not sure what Stardock changed with Windowblinds) but back to the ATI update.

I noted a program "CLI.exe" which is part of ATI's Catalyst program; it appeared to not be mission critical process so I deleted it from start up and rebooted.  Voila! My cursor began working as it should - no more hiding behind windows and icons.  Did I find something that Stardock didn't know? 

Anyway, glad to offer this information for anyone using ATI graphics card and Catalyst software.  If you have the disappearing cursor problem try shutting down the CLI.exe file.

...still hoping for a Stardock fix!

-M