Flickering Curson

I am playing with the demo of CS3 and have a problem with a flickering
cursor. I get the tool's cursor (like the Lasso tool or Brush tool),
but also have the Window arrow alternating with the tool cursor.

Same thing happens on the various Pallets. I get the pointy finger,
but also the Windows arrow flickering.

Any suggestion? The machine is a home built Core 2 Duo with an NVIDIA
Geforce 7600 GS video card running Windows XP. No problem with CS2.

Any help appreciated.
.

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