I had 10.8 installed when I first played the game with 1.06 and the mouse pointers were fine. When Impulse updated me to 1.07, the mouse cursors were using the wrong states and getting confused. (i.e. an attack icon when moving a unit, bow with the red circle and slash through it when I could actually attack, mix n' match, really.) Switching over to windowed mode fixes all of that. I had only ever played 1.06 in fullscreen mode. That's not so bad really, as the ONLY thing different about windowed mode is edge scroll doesn't work.
