I am currently having a problem with a fresh new installation of Precise. The mouse pointer flickers when moved, but this behavior can only be seen if a PS2 mouse is used, plugging in a USB mouse appears to solve the issue.
If both the PS2 mouse and the USB mouse are plugged in, the PS2 causes a flickering movement while the USB works just fine.
I know for sure the PS2 mouse works fine because it worked just fine when I ran Ubuntu the first time through the LiveCD.
I had never seen something like this and I'm pretty stuck with this problem.