Ok, to get rid of the flickering cursor (at least for ATI users) turn everything off or set it to minimum (e.g. x2 for AA etc) or max performance (as opposed to Quality).
Save a profile and call it somethin like 'PST' or whatever.

Now play the game, flickering and mouse trails should be gone.

When you've done playing, switch your card settings back to Standard.

I'm sure there's a specific card setting that causes this, however I did't do that much experimentation, so feel free to modify the above.