I'm running XP with A decent setup, runs damn near everything perfectly... I have the same problem, can't fix through changing mouse settings, can't change through game settings, and the mouse stays crashed 'till I reboot. I was playing 15 mins ago, everything going well, then click, there goes the mouse... Here I am now, on the forum, after checking a few other forums (for fixes, so far nothing) and doing so without rebooting, I still have no mouse as I type this. My life is irritating enough without my relaxation being glitchier than my relationships (lol). FYI same issues as Phizbin; cursor disappears, still in use, cursor image in game frozen in place post glitch though actual cursor (no-image/invisible) still functional, etc.
Anyway... I would hope to see a fix for this