APPLIES TO:

Symptoms

Mouse pointer flickers in Coherence view mode after the upgrade to OS X Mountain Lion. 

Resolution

Download and install the latest OS X 10.8.1 update: click on Apple logo > Software update... and install the update

If the issue still persists:

Disable Crystal Mode in the Virtual Machine:

Virtual Machine menu > Configure... > Options > Coherence and uncheck Use Crystal Mode

One more workaround

Turn on SmartMouse in your Virtual Machine:

Virtual Machine menu > Configure... > Options > Advanced > SmartMouse: ON