I'm still seeing this issue, using xserver-xorg-video-ati version 1:6.13.0-1ubuntu5, on lucid.
** Changed in: xserver-xorg-video-ati (Ubuntu)
Status: Incomplete => Confirmed
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[X1400] Cursor vanishes in narrow vertical strip of 2nd display
https://bugs.launchpad.net/bugs/372841
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