Out of the 4 computers at home, so far it only happens in this computer. At work, it happens with a few co-workers' desktops also.

On this computer, it only happens with IE8. Using Chrome, it's normal. But searching the web, I've seen posts of the exact same problem from people using F.F. and Chrome also also. Some users report the same problem with the iGoogle page also.

It only happens with Google search. You open Bing, Yahoo, etc, the cursor is where it's supposed to be.

It is as if the Google page loses the focus once it's fully loaded up.

Clearing the browser caches doesn't fix it.

On the web, I've found that:

In some cases, users report that for some unknown reasons, Google suddenly got put in the Restricted Site in IE. Once they remove it from the list, the cursor is back to normal. But I checked and it's not the case for me.

In some cases, users reported that if they enable Active Scripting in IE, it will fix the problem. It doesn't work for me.

There is a theory that an add-on may have caused this b/c some users get the normal cursor behavior when they surf in incognito mode. So far no body can confirm that yet. I have tried uninstalling or disabling all add-on's but still it doesn't do it for me.

There are other fixes I've found but none works for me so far. The common element in all these cases is that the users (including me) have changed nothing in their systems. It just happens all at a sudden. We've done thorough malware and virus scans and have found nothing.