http://bugs.winehq.org/show_bug.cgi?id=27028
--- Comment #28 from Benjamin Hodgetts ben@xnode.org 2011-08-14 16:07:35 CDT --- Just updating this.
As of .26 I can no-longer see both cursors (before I could see the X cursor which was the real one, and the game's own cursor which was accelerating away from the real cursor far too quickly which is what is causing these problems).
Just tried Diablo II again, touchpad is still jumping around (accelerating away from the real mouse) but it works perfectly fine with my USB mouse.