Cursor disappears while typing (Outlook 2007)

The mouse cursor disappears when you start typing in a new email in Outlook
2007. This behaviour is consistant with and without office SP2 running on
Windows XP machines. Several of our users are complaining about this issue
because the behaviour is different than Outlook 2003.

I have tried to work around the issue by un-checking the "Hid pointer while
typing" option in [ Control Panel > Mouse Properties > Pointer Options >
Visibility ] but this setting has no effect.

I have also searched help and google for and outlook option to show/hide
mouse pointer with no luck...

Please advise as soon as possible.

Thanks,
John