I've just had to re-install Parallels on a replacement Mac and the wretched mouse is misbehaving even with the 'video.hw_pointer=0' switch. Same video card, same drives, same Win7 VM (albeit with the Parallels Toolbox re-installed another few times). Now, in spite of the three possible settings for the mouse, 'Auto detect' has one black pointer that gets captured by any Windows frame that gets clicked plus a white version that sits on the frame last touched. 'Optimise for games' does much the same thing, needing Ctl-Alt to free the mouse, and 'Don't optimise' sort of works but leaves a white pointer where the last mouse click was. The three required devices are present in the Win7 CP Mouse properties pane, everything says its working and yet here I am with an almost unusable VM.
Any ideas?