My cursor is already set to normal. And I doubt it's flash, but I could be wrong. Here's why: I have eight computers here at work (MB Pro 2010, MB Pro 2011, MB Air, two mac mini servers as desktops, etc.) all running Mountain Lion. Only two Macs don't have the problem -- one that I just purchased (haven't used much) and the older MB Pro. All use the same settings and apps. Unlike many of the other reports here, this only occurs after awaking from sleep mode regardless of the app. I've tried many solutions — resetting pram clean installs, etc.
My latest hunch is that it's a migration issue. All the computers, except the old Mac used Mountain Lion's Migration Assistant. I'm wondering if anyone here has the problem without using Migration Assistant.
I'm currently doing a clean install and not using Migration Assistant; to see if this makes a difference. I may not know for weeks. One computer didn't show the problem until two weeks later.
I've had hundreds of Macs since the first Classic, and it seems to me that this is the buggiest OS upgrade I've come across. All kinds of weird mysterious things have been happening with the OS. This is just one of several bugs I'm dealing with — even when I'm not using Migration Assistant. Hope we see some major fixes soon.