Still happening after the 1.06 update.
jackrandom
I also started noticing this only after installing the latest ATI drivers, and it is present even when not holding any button down. Moving the mouse will cause the cursor to disappear until the mouse stops moving. Hardware cursor does fix this, but as someone else pointed out earlier, that removes some feedback from the game.
I don't think there's anything wrong with the save game file. This happens for me to, and only happens when I am in a game, and try to load the autosave. Every single time i do that, regardless of map (I haven't tried campaign), it will do this. It will not do it if I load a manually saved game. It will not do it if I start Elemental and load the autosave before loading or starting anything else.
I also ran out of memory. It was turn 235 for me. 4 GB RAM, Win 7 64 bit: http://pastebin.ca/1923492