Mouse cursor starts flashing in Internet Explorer

This has started recently and I have tried several fixes to no avail
Changed Mouse, reinstalled IE7, installed IE8.
Scanned the PC with AVK, Kapersky, Spy Bot & Adaware and its clear of virues, etc.
Outside IE on the desktop or in another browser its fine.
When you move it outside IE onto desktop it stops acting up.
It also does not start immediatley in IE, its after a 5/10 mins and starts to flash at a steady rate and dissppears altogether until you actually move the mouse.
Reinstallation of XP prof wass done appro 6 months ago and I want to avoid doing it again and I have a AVG Internet Security which runs in memory and scans daily.

Any help appreciated.

Uninstall the video drivers, then use DriverSweeper to make sure all the components are gone, then reinstall the video drivers. Also, can try re-installing DirectX from the Microsoft web site.
Hope it helps,
N