Interesting Janbe, deleting some of my preferences files seemed to help a lot.
Turns out at one point I had installed a demo version of the CS3 suite on a previous computer but migrated my account to my new laptop and of course all of my preference files came with it even though I've never had CS3 installed on this laptop.
Since I don't use CS3 on this computer I simply deleted all of the adobe CS3 preference files, there were about 20. Some for Illustrator, Photoshop, Dreamweaver, InDesign, Reader, and a few others.
All of a sudden, my mouse cursor is back and has been sticking around. It may disappear in the next few weeks, but since I don't use CS3 those preference files won't be recreated so at least for me it might not be an issue any longer. Here's hoping anyways.