http://bugs.winehq.org/show_bug.cgi?id=27779
--- Comment #52 from Brandon Howard FinalCrisisSX@Hotmail.com 2011-08-06 12:58:38 CDT --- To save someone else who might try this the trouble of attempting a non-working workaround:
I noticed that the cursor actually stops drawing if I shift+tab to open the overlay then close out of said overlay... until I left or right click again. Other buttons on the mouse dont seem to affect this.
So, I tried disabling the in-game overlay both in steam and by adding gameoverlayrenderer.dll to 'disabled' in the libraries tab of winecfg and restarted steam.. Doesn't work.
Guess many of us are stuck with xinput1, a flickering cursor, or an old version of wine for a while more.