To be a bit more verbose - for those looking for a tmp workaround till fixed - 
if no current /etc/X11/xorg.conf then create one with this in it

Section "Device"
  Identifier "NVIDIA GeForce"
  Driver     "nvidia"
  Option     "ConstrainCursor" "no"  
EndSection

If there already is an xorg.conf with a device section then just add a line 
line in the section  
 Option     ConstrainCursor" "no"

-- 
You received this bug notification because you are a member of Ubuntu-X,
which is subscribed to xorg-server in Ubuntu.
https://bugs.launchpad.net/bugs/1057000

Title:
  [Ubuntu 12.04.1/12.10] nVidia drivers 304.51 prevent autohidden Unity
  launcher from revealing

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