Some games manage to pull off cursor replacement on linux (even in windowed mode) without issues (e.g. Dota2, IIRC).
I identified a possible cause for this issue in my 'backbuffer fighting' thread where the cursor replacement is not rendered by the GL context but instead the X server. How the cursor texture is loaded into shared memory by the gpu is probably what is causing problems. see it here: http://www.youtube.com/watch?v=Hw7FpzbalF8 This mis-feature is why compositing is 'required'. Every other game ever replaces the mouse cursor only inside the window, not outside at all.
So, do we have any way of fixing that issue in compiz? Also, has anyone tried running PA in separate xsession?
Re: It's really important find, thank for this research. I actually seen how cursor working, but never think that is PA specifics. I remember neutrino post on backers forum: viewtopic.php?p=748114#p748114