With 1.1RC on Leopard running WinXP guest I've been having problems with the cursor after switching from Unity to Full Screen. If I click on the task bar the cursor simply jumps to the middle of the screen and doesn't do anything. Clicks on the screen or in apps work fine. Possibly related, Money 2007 maximized covers the taskbar and I do not have the taskbar set to auto hide.
Switching to Single Window and back to Full Screen fixes the cursor problem, although Money still covers the taskbar when maximized.
What version of Tools do you have installed? Try uninstalling tools/rebooting guest/installing tools?
I've got version 7.6.1, build 61385 of Tools. Uninstall/reboot/install/reboot guest does not change the behavior.
In testing just now after the final reboot, and observing the weird cursor behavior, Fusion quit responding and I had to Force Quit. When I tried to restart Fusion I got "Failed to get exclusive lock on the configuration file." After rebooting the physical computer the guest boots up without problems and I'm back to the same cursor thing after going from Unity to Full Screen. I'm not able to recreate the hang right now.
Dragging the edge of a window to resize also acts weird; the outline of the window follows the mouse, but when I release the button nothing happens. Then when I click the mouse button again the window resizes as if I had dragged to the middle of the screen.
I wanted to mention that after upgrading to Fusion 1.1 and Leopard the cursor problem is still there. If I switch from Unity to Full Screen and click on the task bar the cursor jumps to the middle of the screen. It doesn't happen if I go to Single Window mode and then to Full Screen.
Just wanted to mention that this problem still exists.